(qlmbusinessnews.com via telegraph.co.uk – – Wed, 13 Dec 2017) London, Uk – –
Water regulator Ofwat has said customers in England and Wales will save between £15 and £25 a year from 2020 under its upcoming price review.
Under the plans, which set limits on the prices that customers will pay for water between 2020 and 2025, Ofwat said it was proposing to set the so-called “cost of capital” that has a direct bearing on bills at a record low of 2.4pc.
Ofwat said its review would ensure customers can “look forward to lower bills, improved services, reduced leakage and more help for the most vulnerable”.
The regulator added that it would challenge water firms “to go the extra mile in terms of the services they provide”. This would include more help for vulnerable customers and greater action to clamp down on leakages. Ofwat wants suppliers to save a further 170 billion litres of water a year, enough to meet the yearly needs of 3.1 million people.
Ofwat chief executive Cathryn Ross said: “The next decade will see profound changes in customers’ expectations and we are pushing the water sector to be at the very forefront of that.”
She added: “We’ve said many times already that this will be a tough price review for companies.
“We will cut the financing costs they can recover from customers and, with this lower guaranteed return, they will need to more efficient and innovative than ever before.
“I’ve no doubt that the sector can step up and meet the challenges we’ve laid before them today”.
The water industry is under pressure to improve its image and performance with Jeremy Corbyn’s Labour Party stating that it would nationalise companies if it came to power. Earlier this year John McDonnell, the Shadow Chancellor, cited figures that showed the price of water in England and Wales had risen 40pc since privatisation in 1989.