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Last Updated:  Wednesday, 26 February, 2003, 16:57 GMT
Watchdog's concern over rising bills
A South West Water bill
South West Water said it has seen a decrease in revenue
The South West's water watchdog has said it is deeply concerned about an average 7.5% rise in bills which is due to come into effect from April.

Customers with meters will see charges go up by 5%, while others will have to pay almost a 10% - four times the current rate of inflation.

The chairman of WaterVoice South West, Dr Noel Olsen, said the rise, combined with added hikes in council tax, means some customers will find it harder to manage.

South West Water (SWW) said the increases were necessary to ensure it has sufficient funding carry out improvement work it is required by law to carry out.

WaterVoice South West feels that the current system for charging is inequitable
Dr Noel Olsen, chairman WaterVoice South West

"Sewerage and water bills are already much more expensive in the South West peninsula than in the rest of England and Wales," said Dr Olsen.

"We have had to pay for the much-needed environmental improvements around the extensive coastline, required by European law.

"With 30% of the designated beaches and only 3% of the population, this has inevitably hit local people hard.

"WaterVoice South West feels that the current system for charging is inequitable."

SWW said it has seen a decrease in revenue because of more people switching to water meters especially one or two-person households.

"The charges are set by the industry regulator, Ofwat," said a SWW spokesperson.

"These charges are set to ensure South West Water has sufficient income to run the region's vital water and sewerage services and carry out the extensive environmental improvements programme required by UK and European law.

Greater loss

"About 50% more customers have changed over to meter payments than was estimated by Ofwat at the last Periodic Review in 1999, resulting in a loss of income greater than forecast by the regulator.

"Basically, this 7.5% is made up of inflation plus an amount set by Ofwat to ensure we have sufficient funding to ensure we have sufficient funding to cover all required improvement work."


SEE ALSO:
Water bills 'to rise'
12 Dec 02 |  Business


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