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Last Updated: Friday, 7 May, 2004, 10:41 GMT 11:41 UK
Rising water costs for households
Picture of tap water
The increases will pay for maintenance and improvements
Household water bills in parts of the UK could rise by �100 over the next five years, water companies say.

United Utilities predicts the biggest increase for its customers, with the average bill topping �355 in 2009/10, compared to �255 this year.

Severn Trent is forecasting a rise of �57, while Anglian Water predicts a �47 increase to �330.

Water UK, which represents suppliers, says the increases are needed to fund �22bn of maintenance and improvements.

Water regulator Ofwat will consider the prices, included in company business plans published on Friday, before making draft determinations in August.

We understand our customers don't like higher prices
John Roberts
United Utilities

The government will then have an input before Ofwat gives its final answer in December.

Consumer group WaterVoice was critical of the rises and saw little benefit for customers.

Chairman Maurice Terry said: "Price rises on this scale will risk worsening the industry's mounting debt problems and drive thousands of customers into debt for the first time."

United Utilities, which supplies water and waste water services to 7m people in the north west, said its price rises were the minimum necessary for its long-term infrastructure improvements.

It said it will spend �1.5bn between 2005 and 2010 on ensuring reliable and secure water and waste water services, and a similar amount on meeting higher drinking water and environmental quality standards.

WATER RISE PREDICTIONS
United Utilities: from �255 to �356
Severn Trent: from �210 to �267
Anglian Water: from �283 to �330
Yorkshire Water company Kelda: from �236 to �285
Northumbrian Water: from �222 to �276
Thames Water: from �201 to �280
Predictions for an average household bill over five years

"We understand our customers don't like higher prices," chief executive John Roberts said.

"However, by 2010 customers will still be paying less than �1 per day for all their water and waste water services."

The company had raised �500m from shareholders last year to help with the costs.

Thames Water said households would see average bills go up from �201 to �280 as part of the company's attempts to finance a �4 billion investment programme.

Severn Trent managing director Brian Duckworth said: "We have tried to balance the reasonable expectations of our customers for service improvements with the need to deliver sustainable returns for our investors.

"We also need to meet all the new improvements which ministers expect of both our drinking water quality and the effluents from our sewage treatment works."




WATCH AND LISTEN
The BBC's Jon Kay
"The water companies say they need to raise an extra �22bn over the next five years"



SEE ALSO:
Water bill rises in the pipeline
06 May 04  |  Business
Wildlife fears over water bills
18 Feb 04  |  Science/Nature
Water bills set to rise
05 Nov 03  |  Business


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