Impact on Customers' Bills
Bills for this year - 2010-11
Prices for this year will remain at the level Ofwat decided in the final determination. We will charge what Ofwat said we could charge from April 2010 with the average bill marginally increasing from this year’s £157. This will mean unmeasured customers will see an average rise of just under 3% whilst measured customers will see a fall of around 1%. Any impact on bills resulting from the decision made by the Competition Commission would be applied from next year’s bill, 2011.
What are we asking for?
We are asking for an increase in average household bills which will mean by 2015 householders will pay 87p per week more. This equate to an average bill of £202*. The current average bill is £157.
An increase of under a pound a week over 5 years remains fantastic value compared with any other household purchase or utility bill.
Remember, we are currently delivering something like 2½ tons of the highest quality water each week into your home for just over £3 plus providing industry-leading levels of service as well.
How bills are calculated
Water companies are given a company specific ‘K’ factor (percentage) figure by Ofwat for each year of the price review period. Each company uses their figure to raise or lower bills. The figure can be negative, positive or flat. Added to that is the inflation figure. This figure is taken from the RPI figure taken from the preceding November. This is combined with the K factor to give the final figure that is used to calculate bills.
* This figures does not include the figure for inflation.
