Watchdog warns of water price rises

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The Consumer Council for Water said the proposed bill increases range from inflation only to almost 30% above inflation.

The regulator, Ofwat, is due to use the data in the second stage of its price setting process to determine the maximum amount each company will be allowed to raise prices between 2010 and 2015.

The Consumer Council for Water spokeswoman said: "While some companies have based their plans around what their customers would find acceptable, others clearly have not.

"Reasons given by the water companies for the price increases vary, but they include tighter environmental and drinking water quality standards, higher energy costs, new financial pressures and work needed to protect assets from natural disasters such as flooding."

She added: "At first sight the Consumer Council for Water is still pleased with plans produced by Dwr Cymru Welsh Water, Severn Trent Water and Yorkshire Water.

"Other water companies, such as Cambridge Water, Three Valleys Water and Southern Water, have revised their plans to bring them more in line with what their customers would find acceptable, although there is still more work to be done.

"However, the proposals by a few companies still fall short of many customers' expectations.

"Despite pressure from the Consumer Council for Water, some companies' plans, such as Bristol Water, Sutton and East Surrey Water, and South East Water, remain out of line with what many of their customers would find acceptable."

Suggested increases in water company average bills from 2009-10 to 2014-15 include 29% in Bristol, 27% in Sutton and East Surrey and 23% for South East.