|
|
News CategoriesThis story is tagged with the following keywords |
Competition Commission allows Bristol Water to increase bills by 15 per cent over five years The Competition Commission has said Bristol Water can increase customers bills by 15 per cent above inflation by 2015. This is less than the 29 per cent increase sought by Bristol in the 2009 price review, but more than the 7 per cent allowed by Ofwat in its final determination. The decision is the outcome of Bristol Water's decision to appeal that determination. "The Company is pleased with the settlement in many respects, although it will be highly challenging to deliver all that is required within the price limits allowed," said Bristol Water's managing director, Alan Parsons. "However, we are concerned that the regulatory system appears to have put more weight on minimising short term price increases at the expense of what, in our opinion, are customers' best long term interests." Appeal group chairman, Laura Carstensen said: "We have had to balance our wish to keep customers' bills down with assessing whether some of the extra expenditure planned by Bristol Water--such as that to repair mains and reduce leaks--is necessary to maintain its quality of service and will ultimately benefit customers. "We have agreed to some of the extra expenditure, which will mean a small rise for customers above the price limits set by Ofwat, but equally we have also rejected several other projects, which would have further increased bills, as well as upholding Ofwat's judgment in a number of other areas." The Commission said the cost of capital should be 5 per cent. This is slightly lower than the Ofwat figure of 5.5 per cent. The Consumer Council for Water warned that the Competition Commission's decision is "well above what many customers will be willing to accept". Charles Howeson, chair of the Consumer Council for Water Western Committee, said: "When we asked Bristol Water customers what they thought of the company's investment and price proposals for the next five years, only one in five told us that they found the company's plans acceptable. Furthermore, about half said that Bristol Water's suggested £45 rise in bills would be unaffordable. Most customers, however, told us they could accept an £11 average price increase by 2015, as put forward by the regulator, Ofwat. "We are disappointed that the Competition Commission did not take full account of the research that we did with Bristol Water's customers. This showed most customers willing to accept a modest rise in bills but not at the level the Competition Commission has decided. A £23 average increase on top of the rate of inflation will not be seen as a small rise in bills by many customers. It will be difficult for many customers to accept, or even manage to pay, as today one in six customers tell us that their bills are unaffordable. Source: Utility Week © Faversham House Group Ltd 2010. News articles may be copied or forwarded
for individual use only. No other reproduction or distribution is permitted without prior written consent.
|
Highlighted Jobs |
|
|