Sunday, February 27, 2011

Severn Trent customers to see bills rise with inflation

SEVERN Trent customers will see their water bills go up by an average of �13 this year.

Industry regulator Ofwat has announced that prices are to rise in line with inflation for 2011/12.

It means the average Severn Trent household bill will rise by 4.3 per cent, or �13, to �311.

In South Cheshire, homes supplied by United Utilities will see their bills rise by 3.9 per cent, or �14, to reach �376.

Across England and Wales, the average household bill is due to rise by 4.6 per cent (about �16) to �356.

The new prices will come into effect in April.

Karen Bowen, chairman of Townsend Residents' Association, in Bentilee, said the increase will hit many households hard.

She said: "People are already struggling and things are just getting worse.

"It doesn't sound a lot but when you take everything into account it all adds up. The general cost of living is going up and up but wages aren't going up to support it.

"I think the fact that funding is being cut for advice surgeries makes it worse – if people are struggling there's not going to be anywhere for them to go."

Severn Trent said that despite the increase, customers will still enjoy the lowest average bills in England and Wales.

Customer relations director Martin Kane said the firm is investing around �1.3 million a day over the next year to improve services.

He added: "We appreciate that everyone has had to tighten their belts recently, and there is help available for our customers.

"If people are concerned about financial difficulties, they should speak to us. There are many ways that you can pay your water bill and we will help them find the payment arrangement which suits best."

United Utilities said households in Cheshire will see more than �51 million being invested in their water supply over the next year.

Customer services director Gary Dixon said: "The small increase in prices this year is due to the rise in inflation. Even so, customers in the north west will still be paying around �1 per day for all their water and sewerage services from April.

"We know that many families are hard pressed at the moment, and we are committed to keeping bills affordable. Over the next few years, we have no big bill increases in store for customers.

"We offer manageable ways to pay bills, and provide dedicated support for customers who are really struggling."

Ofwat ruled in 2009 how much water and sewerage companies could charge between 2010 and 2015, setting prices around 10 per cent lower than what the firms asked for.

It means average bills will remain broadly stable until 2015, but that is before inflation is factored in.

Ofwat chief executive Regina Finn said: "People can shop around for the best deal on many things, but not water. Our job is to do this for them.

"No-one wants to see bills increasing, particular in tough economic times. When we set limits on prices, we listened to customers and challenged companies hard.

"That's why average bills are set to remain broadly in line with inflation up until 2015, while companies are investing more than ever before, �22 billion.

"If companies don't deliver for customers, we will take action. In the past five years, companies have had to pay out more than �500 million following underperformance."



Source: http://rss.feedsportal.com/c/32715/f/503368/s/12fd1f07/l/0L0Sthisisstaffordshire0O0Cnews0CCharge0Ewater0Erise0Einflation0Carticle0E32714720Edetail0Carticle0Bhtml/story01.htm

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