Consumer watchdogs last night attacked a proposed rise in water bills for North-East customers.
Northumbrian Water was yesterday provisionally granted the go-ahead for a 9.6 per cent increase in bills by industry regulator Ofwat. Bills will rise by £19 to an average of £225 when the increase kicks in from April next year.
Ofwat said a leap in costs faced by Northumbria Water -- which serves 2.6m customers in the North-East -- was substantial enough to justify the rise in water and sewerage charges.
But campaign group Water Watch said the rise was far too high and claimed the company was allowed "feather-bed" protection against its costs.
Northumbrian Waster cited increasing customer debt for the rise and said forced changes in the monitoring of water quality had been a factor. It was also able to demonstrate to Ofwat that a reduction in demand for water from that originally forecast in 1999 had led to lower revenue and a "substantial effect" on its business.
Companies are allowed to ask Ofwat to look again at their price limits if circumstances have changed since their last price review, which in this case covered the period 2000 to 2005.
Households have been braced for higher bills following Ofwat's review covering the period 2005 to 2010 which said that bills could rise by as much as 30 per cent.
Any increases for Northumbrian Water customers for that period will take into account yesterday's proposed hike, Ofwat said.
Philip Fletcher, director general of water services, said: ''I regret the need for an increase, but I have a responsibility to ensure that efficient water companies can finance the services they provide to customers.''
Northumbrian Water said that even after the proposed increase, which is subject to consultation, customers would still be paying about £16 less than they did in April 2000.
Pete Bowler, of campaign group Water Watch, said: "This increase is an extremely high figure and shows that there is far too much protection for what are after all commercial companies.
"The reality is that they face no risk whatsoever and can fall back on a financial regulatory system which protects their income and profits and allows them to pass on their costs to customers."
*Customers who wish to make representations over the rise should write to Water Voice, Northern region, c/o Eighth Floor, Northgate House, St Augustine's Way, Darlington DL1 1XA.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article