Ofwat demands £50 water bill price cut and extra £12bn investment from firms
The water industry’s regulator is demanding firms slash their household bills and bolster investment in the sector under new plans unveiled this morning.
Customers could be set for an average £50 drop in their water bills from 2020 to 2025, after watchdog Ofwat called on companies to lower their prices.
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Water companies have also been asked to inject an extra £6m each day into improving the industry’s infrastructure, marking a collective investment of £12bn over the next five years.
The move comes in the wake of growing public frustration at some of the UK’s largest water companies, which have received a rising tide of complaints amid higher prices and leakages in recent years.
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“These are seriously stretching goals for the sector, but we know they can be achieved,” said Ofwat boss Rachel Fletcher.
She added: “We have seen three water companies leading the way and we now want the rest to show the ambition and drive to deliver this new era for customers and the environment.”
Earlier this month Ofwat slammed “disappointing” spending plans from four major water companies, calling on them to revise their price strategies.
Ofwat will publish its final conclusions for all companies on 11 December.