Household water bills to fall by up to £110 by 2025
HOUSEHOLDS in England and Wales are set to see an up to £110 drop in water bills over the five years between 2020 and 2025.
The plans have been revealed today by water regulator Ofwat, which says bills will fall by £50 on average.
It has secured the price drop by forcing water companies to pass on savings made through lower financing costs.
But Ofwat points out that this £50 decrease doesn't take into account the impact inflation may have on bills.
Water bills typically rise each year in April, although some water companies have already promised to cut water bills from April 2020.
Most providers will introduce a big bill reduction from April next year and then keeping prices stable for the following four years.
Northumbrian Water customers are set to make the biggest savings with a bill reduction of £110.
In England and Wales, prices are set by regional water and sewerage companies and monitored by Ofwat.
While in Scotland, Scottish Water sets charges.
Households don't have to pay for water bills in Northern Ireland.
In addition to cutting bills, Ofwat says water firms have agreed to cut problems leaks by 16 per cent and invest £1billion to protect communities from flooding.
Companies have also pledged to do more to help an additional 2million customers who need extra support - for example, Braille bills for blind users.
They've also agreed to reduce river pollution, and stump up £450million to prepare for drier weather, such as building reservoirs.
How to save money on your water bills
IF you're not eligible for a social tariff, here are other ways to cut your bills and keep costs down.
- If you’re struggling to pay your bill, discuss it with your water company. Some offer freebies to help you reduce the amount of water you use, such as save-a-flush devices and special showerheads
- Check what water and sewerage services you receive and claim a rebate for any you're not getting
- Check that you are paying the correct tariff
- If you aren't already on a meter, check if you can reduce your bill by having one installed free of charge. CCWater has an which can help you see if you'll be better off
- If you have more people in your house than rooms, you'll probably save money by having a meter
- Read your meter regularly - it can help save you money
- Look for ways to reduce your water usage if you're on a meter, eg turning off the taps when you're brushing your teeth
- If you're still struggling, you could apply for the independent scheme Watersure to reduce your bills. You'll have to prove that you need a lot of water - for example, if you have more than three school-age children living in the house. You'll also need to receive one of the following benefits:
- Universal Credit
- Housing Benefit
- Income Support
- Income-based Jobseeker’s Allowance
- Working Tax Credit
- Child Tax Credit
- Pension Credit
- Income-related Employment and Support Allowance
- If you fall behind on your water bill, lots of water companies run hardship schemes or have charitable trusts that can help you pay off your arrears. Simply contact your water supplier and ask what services are available
Thames Water in London has also been allowed to bid for up to an additional £480million to boost its service, although it will need to pass a series of tests to qualify and its investors will also need to put up additional funding too.
Ofwat chief executive, Rachel Fletcher, said: “Today we’re firing the starting gun on the transformation of the water industry backed by a major investment programme to deliver new, improved services for customers and the environment and resilience for generations to come.
"Now water companies need to crack on, turn this into a reality and transform their performance for everyone."
Tony Smith, chief executive of water watchdog, the Consumer Council for Water, added: “Most customers will see this as a good deal but more must be done to make sure everyone can afford their bill and ensure there is sufficient investment in safeguarding these essential services long into the future.”
More on bills
New research recently revealed that 3million households in England and Wales are struggling to pay their water bills.
Water bills went up by up to £16 a year in April 2019.