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Last Updated: Friday, 29 August, 2003, 06:03 GMT 07:03 UK
Water firm warns of price rises
Water bills in the North West are likely to rise
Water bills in the North West are set to rise after United Utilities predicted an increase in charges 12% above the rate of inflation.

The company says it is mostly due to the extra cost of meeting new drinking water and environmental standards.

On Thursday Pamela Taylor, chief executive of Water UK, which represents the water firms, said the average water bill needed to rise by �75 over the next seven years.

On Friday, United Utilities, which supplies most of the water in the region, confirmed it would be seeking to implement the rises.

The company says the extra money - about �2.2bn - has to be spent to meet the higher drinking water and environmental standards required by the government.

Plans also include spending about �200m on tackling sewage flooding and odour problems.

Regulator approval

The water firm's plans for price rises will have to be approved by Ofwat, the industry regulator.

Ofwat is expected to take up to a year to decide on what prices water firms can charge.

The new price regime will come into operation from 2005 and last until 2010.

Previously, the regulator has taken a tough line with water companies, imposing a strict price cap.

Ms Taylor said the estimates were an opening gambit in what may be a tough negotiation for the water firms

She added: "The estimates are a starting point. Their relationship to the bills after 2005 depends on decisions yet to be taken."


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