South West Water follows trend for below inflation bill rises

South West Water has indicated it will keep increases on customer bills below inflation for the five years between 2015 and 2020.

This mirrors the move by Anglian Water and Southern Water who this month announced their bills would not rise by more than inflation during the same period.

The water company said that its business plan, due to come into force as part of regulator Ofwat’s latest PR14 price review, would cost £850 million to deliver.

South West Water chief executive, Chris Loughlin, said: “We believe we are close to striking the right balance between the needs of customers, the environment and the economy. Although no one likes to see bills increase, we should be able to keep future increases below the rate of inflation.”

Customers and businesses are being asked to comment on South West Water’s proposals before they are submitted to Ofwat in December.

The proposals recommend investment that are set to lead to below inflation bill increases of around 2.5 per cent per year -an overall £68 increase in the average annual household water and sewerage bill between 2015 and 2020.

South West Water customers currently face the highest water bills in the country.

Ofwat says the high bills are down to investment spent on improving the water quality South West’s expansive coastline, which makes up 30 per cent of all the coastal bathing waters in England and Wales

The region is also has the highest ratio of coastline to land of all the water and sewerage companies in England and Wales.

In February a flat rate annual deduction of £50 was introduced to South West Water bills to alleviate the strain on consumers.

The Treasury funding meant that the average annual household bill for water and sewerage in South West Water’s service area fell by 7.3 per cent to £499.

However, according to regulator Ofwat, the average national charge for water and sewerage is now £388, which is £111 less than the bills South West Water customers face.

South West Water forecasts an average annual water and sewerage bill in 2020 of approximately £588.

Charles Howeson, regional chair for the Consumer Council for Water, said: “I’m sure customers in the south west, who pay the highest water and sewerage bills in the country, will want to have their say on South West Water’s investment and price proposals for 2015 to 2020.

“Even a slightly below inflation increase in bills would represent a price rise for many customers in these difficult economic times. The real test will be whether these proposals prove acceptable to customers and we’d encourage them to make their views known to the company.”