Introduction
“Our proposals mean investing over £1 million a week to 2015. We believe that we have no alternative, in the interests of all our current and future customers, to ask for the issue to be referred to the Competition Commission for review.”
ALAN PARSONS Managing Director more >>
“What we must deliver will cost much more than Ofwat has allowed. There is a huge, multi-million pound gap between what we know we have to do and what Ofwat are willing to allow us to fund from bills.
“Without the money, we will not be able to invest enough to protect services for the one million-plus people and businesses we supply at the heart of the West. For well over 160 years, we have supplied an essential service to the community. We have industry-leading standards of service, excellent water quality, one of the lowest leakage levels and below-average bills.
“Bristol Water has consistently spent much less than nearly all other water companies in an effort to keep prices as low as possible. Our engineering judgement now is that we have no alternative but to have a sharp increase in the level of investment if we are to avoid the service deteriorating and continue to meet the expectations of our customers.
“We are well aware that our proposals mean increasing customer bills. We have worked very hard to find ways to minimise the increase.
“Our customers have benefited from a long period when we have been able to keep bills down by stretching our assets’ working lives. Unfortunately, there are now a number of factors coming together that mean increased levels of investment cannot be deferred any longer. This inevitably means costs, and bills, increasing. We do not agree with Ofwat about the scope of necessary work and cost of dealing with these issues and so must ask the Competition Commission to review the matter.
“What we propose would still represent great value for money – but we have also put in place extra help for customers who struggle to pay their water bills.”
Bristol Water’s Final Business Plan set out proposed service and investment levels and price limits. The company said it needed to invest £319 million in the five years to March 2015 by
- investing so that the essential infrastructure does not deteriorate
- having enough water available to meet growing demand, despite climate change
- cutting leakage by 10%.
- making further water quality improvements.
- providing greater security of supply in due course for hundreds of thousands of people
The Company’s proposals mean investing over £1 million a week to 2015. After taking account of operating costs and related financing needs, less potential efficiencies, this would see the average yearly bill rise to £202 by 2015.
Our appeal will take up to six months. During that time we will do our best to keep customers informed via information and updates on this site. There is also a comment section available here and we would welcome any feedback or questions.
Alan Parsons
