Customers benefit from company results
06/06/2007
Water charges will be less than expected for the next two years, Essex & Suffolk Water revealed today.
Announcing a strong operational and financial performance for the year to March 2007, Northumbrian Water Group - the parent company of Essex & Suffolk Water - confirmed it will not increase prices by the full amount allowed by the regulator Ofwat. Instead it will peg any increase in bills to inflation.
This means that Essex & Suffolk Water bills are now, and will continue to be, only £2 more in real terms than they were in 1999.
Northumbrian Water Group has been able to obtain funding for its massive investment programme at a lower cost than anticipated and will pass back savings of around £22 million to customers.
This year’s average Essex & Suffolk bill for water services is £160.
Managing Director John Cuthbert said: "We are pleased to report good operational and financial results. These provide the foundation for continued good performance through the remainder of the current regulatory period to 2010.
“We have put in place the funding needed for the investment we need to make by 2010 and that programme will deliver the priorities identified by our customers, the Consumer Council for Water and our other stakeholders.
“As a result of the strong performance we have decided not to apply the price increases above RPI allowed in the last two years of the current regulatory period to 2010. Alongside high standards of service, customers will now benefit from bills that will be lower than they would have otherwise been,” said Mr Cuthbert.
In addition to the lower than anticipated bills Northumbrian Water Group customers will also continue to benefit from a massive improvement programme.
In 2006/07 Northumbrian Water and Essex & Suffolk Water invested £225 million in further improving water quality and the environment. In the Essex and Suffolk area this includes:
• 66km of water mains renewed or relined
• 2,497km of distribution mains flushed clean
• Additional treatment facilities installed at Chigwell drinking water treatment works to protect supplies in Essex at a cost of £2.1million
• Top quality drinking water standards maintained
• Leakage targets met
• Provided supplies throughout the dry summer without the need for any restrictions on water use
• Operation of its unique £13million Langford recycling plant to increase resources by reclaiming waste water for drinking water treatment
• Continued work on its £80million plan to increase capacity of its Abberton reservoir near Colchester by 60% by 2014 to meet future demand
Full detail of Northumbrian Water Group’s results have been sent out and if not already received are available on request.
For further information contact Alistair Baker 0191-301-6851 or 07711-793493