Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Former MSE Paloma
    • By Former MSE Paloma 12th Dec 14, 10:12 AM
    • 526Posts
    • 245Thanks
    Former MSE Paloma
    MSE News: Water bills to fall by average of 5% over next five years
    • #1
    • 12th Dec 14, 10:12 AM
    MSE News: Water bills to fall by average of 5% over next five years 12th Dec 14 at 10:12 AM
    "Water regulator Ofwat's today told suppliers to cut water bills by an average of 5% between 2015 and 2020 ..."

    Read the full story:

    Water bills to fall by average of 5% over next five years




    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.

Page 1
    • Cardew
    • By Cardew 12th Dec 14, 10:37 AM
    • 27,886 Posts
    • 13,746 Thanks
    Cardew
    • #2
    • 12th Dec 14, 10:37 AM
    • #2
    • 12th Dec 14, 10:37 AM
    On a week when the stock market has taken a hammering(down by over 100 so far today) the shares in my water company(Severn Trent) have risen 1.4% - no doubt from relief that Ofwat have been so kind and gentle with the future pricing structure.
    • Andy_WSM
    • By Andy_WSM 12th Dec 14, 10:50 AM
    • 2,151 Posts
    • 4,574 Thanks
    Andy_WSM
    • #3
    • 12th Dec 14, 10:50 AM
    • #3
    • 12th Dec 14, 10:50 AM
    The headline is somewhat (very!) misleading too.

    Water bills to fall...

    No!

    "Water bills for England and Wales will fall by an average of 5% - not including inflation - by 2020, the regulator Ofwat rules."

    As inflation WILL be more than 5% (likely MUCH more) in the 5 years between 2015 & 2020, then bills will continue to rise!

    • Andy_WSM
    • By Andy_WSM 12th Dec 14, 10:58 AM
    • 2,151 Posts
    • 4,574 Thanks
    Andy_WSM
    • #4
    • 12th Dec 14, 10:58 AM
    • #4
    • 12th Dec 14, 10:58 AM
    At least my 2 providers - who are amongst, if not, the most expensive in the country have been told to really pull the strings in. Amongst the highest reductions in the country. Good!

    Bristol water down 21%!
    Wessex (Sewers) down 9%

    • gsmlnx
    • By gsmlnx 12th Dec 14, 12:21 PM
    • 1,595 Posts
    • 1,167 Thanks
    gsmlnx
    • #5
    • 12th Dec 14, 12:21 PM
    Worked example of water costs under new policy
    • #5
    • 12th Dec 14, 12:21 PM
    My supplier (anglian) has to reduce bills by 10% excluding inflation at RPI rates by 5 years time.

    Now RPI is higher inflation rate only used to increase prices to consumers while the lower rate of CPI is used by Government to prove how good they are at economics and to reduce the real value of any government pension or other benefit.

    So RPI is 2.3% currently so my water bill will rise at that rate this year. This rate will probably go no lower over the next five years.

    So for every £100 of my current bill

    in 2016 = £102.30
    in 2017 = £104.65
    in 2018 = £107.06
    in 2019 = £109.52
    in 2020 = £112.04

    Now take off the 10% of £100 from this year (2014) = £10

    and 2020 is now £102.04

    This is assuming inflation is static at 2.3% (unlikely) and no new government initiatives are launched after the election.

    I have a feeling that this is just an election bribe and this policy will vanish after May 2015. The water companies and government will make something up like interest rate rises or flood defences or new water sources need to be paid for and this policy will be replaced.
    • Patr100
    • By Patr100 12th Dec 14, 10:38 PM
    • 1,367 Posts
    • 574 Thanks
    Patr100
    • #6
    • 12th Dec 14, 10:38 PM
    • #6
    • 12th Dec 14, 10:38 PM
    So annoyed at the way this has been reported .
    Today's decision means the average water and wastewater bill in England and Wales will fall by around £20, from £396 to £376 (before inflation) by 2020

    Very misleading to imply it is a cut in headlines ie people will pay less, if not factoring inflation in. It is a reduced increase perhaps but bills will not fall for most.
    ---I Shop Therefore I Am ---
    • Pincher
    • By Pincher 13th Dec 14, 4:45 AM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    • #7
    • 13th Dec 14, 4:45 AM
    • #7
    • 13th Dec 14, 4:45 AM
    Before the water meter, the price was shooting up at roughly £50 a year. £750 a year forced me to get the meter.
    It's been more than a year now, and two people is less than £200 a year. In fact, I think we are still using up the surplus from the account from before. They are taking about £2 a month using the direct debit, probably the minimum amount.


    5% on £750 would be nice, 5%on £200 is barely raising a smile.
    5% OVER FIVE YEARs? So that's 1% a year? Now that's a joke that could make me laugh.
    • Andy_WSM
    • By Andy_WSM 13th Dec 14, 6:35 AM
    • 2,151 Posts
    • 4,574 Thanks
    Andy_WSM
    • #8
    • 13th Dec 14, 6:35 AM
    • #8
    • 13th Dec 14, 6:35 AM
    I see Bristol Water have been busted for a second time trying to lift money from our wallets.

    http://www.bbc.co.uk/news/uk-england-somerset-30445294

    They wanted to increase all their customers bills by £7 a year to pay for a new reservoir, then go on to admit (having been told "no!") that "additional revenue could be gained from 50,000 homes planned for the area. If they are built this would offset the increase."

    If the infrastructure has to be increased to cope with new homes, make the builders and the new home owners pay for it. I've more than paid my way - hence the staggering 21% decrease they've been told to impliment.

    • jimjames
    • By jimjames 23rd Dec 14, 12:08 PM
    • 13,241 Posts
    • 12,302 Thanks
    jimjames
    • #9
    • 23rd Dec 14, 12:08 PM
    • #9
    • 23rd Dec 14, 12:08 PM
    So annoyed at the way this has been reported .



    Very misleading to imply it is a cut in headlines ie people will pay less, if not factoring inflation in. It is a reduced increase perhaps but bills will not fall for most.
    Originally posted by Patr100
    Problem is that no-one knows what inflation will be so this is the most logical way of showing what will happen to bills. It's nothing new, every price review has been done in the same way but normally it has been a plus RPI figure so bills rise above inflation.
    Remember the saying: if it looks too good to be true it almost certainly is.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,274Posts Today

7,014Users online

Martin's Twitter
  • RT @MartinSLewis: I sued Facebook for defamation over scam ads & settled in return for 2 things that LAUNCH TODAY -1on1 scam help at new C?

  • Bizzare German twitter mash article has called me "MARTIN LEWIS, der Geldsparexperte," Any german speakers out the? https://t.co/1tXEzCe4Y3

  • Have you ever been scammed? If so did you keep it quiet? If not would you keep it quiet or tell people? Please vot? https://t.co/68bkmbT9gc

  • Follow Martin