Water bills set to rise by more than expected

WATER bills in the North East are likely to rise more than was previously expected after the competition authority allowed Northumbrian Water an additional increase.

- GRAEME WHITFIELD

Northumbrian and four other water companies, all in the South, had gone to the Competition and Markets Authority after saying that industry watchdog Ofwat's original decision left them unable to meet regulatory requirements and improve environmental performance.

The company had asked for a 6% increase on the previous Ofwat bill level, which would have seen it allowed to increase an average annual bill to £515. The CMA hasn't granted that request but has allowed Northumbrian Water an additional 1%, saying that average bills will now be £495.

An independent group of experts appointed by the Competition and Markets Authority (CMA) said Anglian and Northumbrian should be allowed to increase their bills by a further 1%, Southern by 3%, South East by 4% and Wessex by 5%.