WATER bills in the north west are set to rise 17 per cent in the next five years - less than half what United Utilities wanted.
Ofwat, the water regulator, ruled today that the average household bill could go up from '269 in 2004-05 to '315 by 2009-10, not including inflation.
The rise is one of the biggest in the country, but still far less than the '416 United Utilities had demanded last year to pay for '3.8b of maintenance and improvements.
The company lowered their sights in May to ask for an average yearly increase of 7.8 per cent over five years, including rises of more than 10 per cent in 2005-06 and 2006-07.
But Ofwat said they could have no more than an average annual increase of 3.5 per cent, while still raising a '2.4b "clean-up" fund - enough to carry out various improvements.
These include upgrading 51 water treatment works, replacing 2,500km of mains and reducing pollutants running into the River Eden from Bolton sewage works.
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The company denied it had been trying to take customers for a ride and said it was too early to specify what environmental projects it would have to drop.
"It is not true to say we were asking for more than we needed," said a spokesman. "Our original investment programme was set by bodies like the Environment Agency.
"Some schemes have been taken out, but our rivers and coastal waters are already cleaner than they have been since the Industrial Revolution.
"Water quality in the north west is higher than it has ever been."
Consumer groups warned they would still demand that United Utilities, named by the Environment Agency last month as the region's worst polluter, should deliver better water quality and service and John McFadden of WaterVoice said: "Even these increases will not be affordable for everybody."
Philip Fletcher, director general of water services at Ofwat, said: "I believe [our] proposals are fair to customers and to the company, and would benefit the environment."
Nationally, water bills are set to rise from an average of '249 in 2004-05 to '282 in 2009-10. The government will also have its say before Ofwat makes a final ruling in December.
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i am glad that UU have not been allowed their massive increases. when it was announced i tried to complain to UU about the size of increase. guess what i could not get anyone to make a statement regarding this issue - even to the extent of having the phone put down on me. so UU think that they do not have to listen to complaints from customers - wrong. i am disgusted withteir cavalier attitude, dont forget this is the company that has its call centre outside the uk - something else they dont like to talk about, and this was done not for the benefit of the customer - but the benefit of the shareholders.
i think all the directors of UU should take a pay cut and fund some of their schemmes themselves.
Lets hope ALL the utilities go the way of the Railways and are taken back under government control.
There should be NO PROFIT in essential commodoties.
Why is the money going up when all the time more and more people are coming into the country which should if anything bring the price of the "service" down. GREED STRIKES AGAIN.