5 June 2008
Northumbrian Water has revealed that prices of the utility may be about to rise, citing the general growing cost of energy and a series of projects as the reason.
While the outfit claimed that it will attempt to keep any price hikes in line with inflation, it admitted this will be difficult in the present economic climate.
Various expansion schemes are to be carried out in the months ahead, warned Finance Director Chris Green, something that will have an impact on bills.
"The margins included are very small. Competition could thin margins further, but the other thing is it would run the risk of increasing the cost of capital," suggested Mr Green in relation to more firms entering the market.
But the outfit has stated that profits in the year up until the end of June stood at £170.3 million, a rise of 15.2% from the year beforehand.
In the north-east of England alone, the company says that it provides services for 2.6 million people.
© 2008 Adfero Ltd
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