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Your Money > Household Bills Articles > Cut your water...
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By Sarah Modlock
At this point I feel as if I should be wearing a little devil outfit and brandishing a trident. It feels evil to be bringing doom about the latest depressing drain on your income..... water rates. Just don't shoot the messenger. On top of your higher mortgage payments, nasty hikes on energy, petrol costing an arm and a leg and food prices soaring you can expect to pay more for water. How much more will you pay? Around a quarter more, adding an average of £40 to bills. The increase is due to the new spending drawn up this week by water companies who want to spend £27 billion of new water and sewerage projects. Worst hit would be the one million households served by Bristol Water, which has proposed a total increase of 26% over the rate of inflation between 2009 and 2015. That could push an average bill up from £149 next year to £187. Bristol Water said part of the price increase on rising energy costs, as well as work needed to bolster flood defences. Ten water companies have submitted plans to regulator Ofwat in the first stage of a five-yearly investment review to determine standards, spending and customer bills during that period. Private matters A change in the law in 1989 led to the privatisation of the water authorities and gave rise to ten water and sewerage companies, all owned by parent companies. Many UK suppliers were snapped up by foreign buyers who have enjoyed huge windfalls despite a succession of service failures. The biggest, Thames Water, was bought by German firm RWE who in turn sold it on to Australian bank Macquarie for £8 billion. Anglian Water is owned by a private group dominated by foreign investors, while French, German and Arab firms own significant parts of the industry. Southern Water, which was bought last year by a consortium led by the US investment bank JP Morgan, said that it needed to spend £2.6 billion to meet tough new EU environmental rules. Its price rise will push water bills for its customers in southeast England to £426 a year by 2015. Thames Water is seeking to raise bills for its 13 million customers by 3% above the rate of inflation per year, adding up to a total increase of 16% by 2015. The proposals mean its average bills could rise from £280 next year to £329 by 2015, excluding inflation. Although Bristol Water sought the steepest rises, it was almost as bad for the four million customers of Southern Water, who could face a 23% increase over the same period. Northumbrian Water, which supplies 2.6 million people in the north east of England will push average annual household bills will rise to £290 by 2014. The firm said additional revenue would pay for a £1.3 billion programme of improvements and upgrades and described the planned increase as "modest" adding that in real terms households would be paying less than they did in 2000. The increases still need to be approved by Ofwat. A decision is expected in November 2009, so there is time to start saving. Not all the water companies proposed such dramatic rises though.Welsh Water and Severn Trent, which serves eight million customers in the Midlands, will keep increases broadly in line with inflation. How to save You can avoid paying more than you need to by either by switching to a meter, applying for a special tariff, or making sure they are not being charged for services they don't receive, according to the Consumer Council for Water. The water watchdog suggests that the first thing customers can do is check whether they would save money by having a meter installed. People living alone or those who currently pay higher than average charges are most likely to benefit. Companies install meters for free and if customers see their bills rise they are able to switch back to their old charges within 12 months. A single person living alone in a property with an average rateable value could save around £100 by having a meter installed. A water meter calculator is available on the Consumer Council for Water's website, where you can work out if installing a meter could save them money. Customers who already have a meter can cut their bill by taking simple steps to avoid wasting water they are paying for. Fixing dripping taps, installing a water saving device in toilets, taking showers rather than baths and collecting rainwater for use in the garden are all great ways to be water efficient. A household paying the average metered bill who reduce water waste by ten per cent could save around £25 per year on their water bill. You may also be able to save money by taking a closer look at your water bills. Customers who have a septic tank should not be paying any sewerage charges. Surface drainage charges, which are typically around £30 a year, should not apply to customers with their own soakaway, where rainwater does not drain into the public sewerage system. If you're in either of these situations then contact your local water company to have the charges removed or it could mean, quite literally, money going down the drain. Useful links: |
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