U.K. Water Bills to Drop 5% in 2015 After Price Review

Households in England and Wales today received a boost when Britain’s water regulator published a final determination on prices that will see the average customer bill fall about 5 percent starting next year. Ofwat published the prices that Britain’s water and waste companies, including United Utilities Plc (UU/) and Severn Trent Plc (SVT), can charge for the five-year period starting 2015. The measures will see average annual rates drop by about 5 percent before inflation, meaning bills will be reduced by about 20 pounds ($31) from 396 pounds now to 376 pounds, it said in a statement. The water regulator sets limits on how much utilities can charge customers every five years. The decision is aimed at supporting 44 billion pounds of investments in measures such as curbing leaks and sewer flooding including into the Thames River while keeping household bills as low as possible. The price review has been subject to consultation with some utilities tweaking and re-submitting rate plans. “We are bringing down bills so customers can expect value for money while investors can earn a fair return,” Jonson Cox, chairman of Ofwat, said in the statement. “Companies will need to stretch themselves to deliver much more with the same level of funding as in previous years.” The decision means United Utilities, Britain’s largest publicly traded water company, will see its water and sewerage bills decline an average of 3 percent over the five-year period. Rates at Severn Trent, the U.K.’s second-largest publicly traded utility, will drop 5 percent. Companies will have two months to accept Ofwat’s decision or challenge it. By Louise Downing