H2 woe for consumers as water bills rise

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INFLATION has been blamed for pushing water bills up by five per cent across the Severn Trent region.

It means from April hard-pressed households will have to find on average another £16, with the typical bill rising to £326 a year.

Ofwat announced in 2009 bills would remain 'broadly stable' before inflation over the next five years and approved a pricing deal with Severn Trent which would have seen bills fall by an average of £13 to £292 by 2015. But Ofwat say rising inflation over the last two years has forced it to approve the increase announced today (Tuesday).

Although Severn Trent bills remain the lowest in England and Wales, consumer groups have lined-up to condemn the increase.

Dame Yve Buckland, chair of the Consumer Council for Water, said: "Under the system of regulation, water companies are allowed to add inflation to the price limits agreed with Ofwat.

"However, in the current economic climate, many customers are struggling with rising household bills and the level of water debt is growing.

"Companies need to tell their customers very clearly what they are getting for their money and to help customers who are having difficulty paying their bill."

Ann Robinson, director of consumer policy at uSwitch.com, said those in single or small households should consider switching to a water meter.

"Yet again the relentless drain on our finances will leave households fighting for air.

"The price increase may seem like a drop in the ocean, but it will add to the pressure consumers are under and will erode the breathing space afforded by the recent small fall in energy bills."

Simon Mullan, customer relations director for Severn Trent Water, said the company was investing in the water and sewage network including reducing sewer flooding, ensuring drinking water quality improvements achieved in the past two decades were maintained, developing sustainable drainage and minimising carbon emissions.

"We have worked hard to keep prices down for our customers and are proud our water and sewerage bills are the lowest in England and Wales.

"This year we will invest around £78million in Gloucestershire, Worcestershire and Warwickshire to upgrade our infrastructure and deliver the service improvements our customers have told us are important to them."

Anyone struggling to pay their water bill is urged to contact Severn Trent on 08457 500500.