Bills have increased because although Bristol Water operate very efficiently, costs rise as a result of money spent to meet ever higher standards, particularly environmental ones. Our regulator, Ofwat, confirms the overall limits within which our charges can change and the way in which we apply charges each year. Ofwat allows our overall charges to change by inflation, or RPI, plus what is known as the K factor which can be set to either a positive or negative amount. The K factor is the amount Ofwat allows us to charge in order for us to finance the provision of our services and meet our investment obligations. They can also, as they have for the next two years year, allow us to recover the loss of income from costs that were not able to be determined at the time of the last price review, which set our K factors for the 2005-10 period. The K factor for this year is 0%.
Our overall average increase in charges for 2009/10 is 3.4% but although we quote average increases, few customers have an average bill. Your bill may go up by more or less than 3.4% depending on the service you receive from us, how much water you use if you are a metered customer or the rateable value of your property if you are an unmetered customer. |