Water bills set to rise

Aug 11 2008

Households across Merseyside have been warned of water bill hikes after United Utilities submitted its draft business plans to regulator Ofwat.

The company, which manages water and wastewater distribution in the North West of England, said customers are set to see their average bills increase by just over 2% a year between 2010 and 2015, excluding annual inflation.

United Utilities revealed the bill increases as it outlined aims for multibillion-pound investments in water and sewerage services, as well as cost cutting schemes to drive efficiency.

The Warrington-based firm - serving nearly three million customers with water and sewerage services - plans to pump £4bn into its services.

In February consumers across the country learned their water bills will increase by an average 5.8% this year, with households in some areas seeing their annual bills soar by an inflation-busting 8%.

United Utilities pledged to improve its annual underlying operating efficiency by 1.5% as it announced the bill hikes, although it said costs overall would increase.

The group is also replacing its system of Victorian cast iron pipes and, among other investment schemes, is planning to build a new West to East water pipeline that will be able to transport up to 100 million litres of water each day.