2 November 2006
Yesterday saw water regulators Ofwat laying out its future plans for water regulation, including a statement that it would need to set price limits for the next five years.
This is positive news for consumers, who have seen the profits of companies like Thames Water and AWG soar, while the water bills issued to the public also continued to rise. It is hoped that the new regulations will be harsher on water companies, which many critics felt were let off too easily back in 2004.
In 2004, Mr Fletcher, the chairman of the Ofwat, allowed a price rise of 18% on average to pay for a £17 billion investment programme.
Despite the profits boom, many customers have been receiving a less than satisfactory service, with reports of water suppliers missing their leakages targets and with two companies currently being investigated for allegedly falsifying customer service reports.
Ofwat also announced that it would expect the water companies to provide a 25-year business plan to help develop its work in addressing the long-term needs of the sector.
Chief executive Regina Finn commented: "We need to take a long-term approach to the way we regulate and expect the companies to do the same in their planning. This will ensure that we safeguard not only the interests of today's customers but also those in the future."
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