Photograph by Joe Shlabotnik
Water regulator Ofwat was refused Thames Water’s request to increase customer bills by 8% next year.
Thames Water wanted the £29 per bill rise because it claims that various items had cost more than they had originally estimated in the latest price review, with the company facing extra costs of £291 million. However, Ofwat ruled that the water company must stick to the 1.4% aove inflation maximum rise set out in that review.
Ofwat’s chief regulation officer Sonia Brown said:
“We said we would challenge Thames’ application, in the interests of customers. We did just that and on the evidence provided we are not convinced that an extra bill increase is justified.”
Thames Water has the option to appeal the decision to the Competition Commission.
Water companies will submit their business plans on 2nd December for the next price review, which will cover from 2015 to 2020, with Ofwat stating that they believe that some water bills could be reduced during the period.