Ofwat rejects proposed water price rise
The water regulator Ofwat has rejected a bid by Thames Water to increase the average annual household bill by £29 for 2014-2015.
Thames Water wanted to raise water prices because it said it has taken additional unforeseen costs of £291m on things such as bad debts, land purchases, Environmental Agency charges and more, after the current prices were set.
Thames Water wanted to increase the price by 8%, but the regulator has said any rise must not exceed 1.4% above inflation.
Option to appeal to the competition commission
Thames Water said it would “review the decision carefully” before it took any further action, such as appealing the decision to the competition committee.
The current average household water bill under Thames Water is £354 per year, they’re the largest water company in the UK serving 14 million customers.
Win for Consumers
So a win for consumers and households this time.
Ed Miliband has also called for the voluntary social-tariffs for the low paid, which were introduced last year, should be made compulsory.
Water bills are becoming a bigger and bigger concern for many households, you may be able to counter the effect by finding a better energy tariff using our home energy comparison engine (link below), it's worth having a look to see if you can get a bit more money under your belt this Christmas.