More investment to deliver quality improvements to customers

02/12/2004

Additional improvements to drinking water quality and work to combat sewer flooding can now be delivered for customers in the next five years following today’s announcement by Ofwat.

The water regulator Ofwat has announced the price limits it will allow companies to set for the five years from 1 April 2005.  This will allow nearly £840 million to be invested by Northumbrian Water to maintain and improve services to customers and further protect the environment.

Ofwat’s announcement means that Northumbrian Water’s average bill for water and sewerage services will increase from £232 in 2004/5 to £260 in 2009/10, before inflation.

In 2009 Northumbrian Water’s charges will be the lowest in the country. They will also be lower in real terms than they were in 1999 and between 1999 and 2009 the company will have invested more than £1.6 billion on improving services.

Ofwat has considered the proposal Northumbrian Water submitted to fund maintenance of its existing assets – treatment works, pumps, pipes, sewers and other facilities – and to provide new assets in line with Government requirements to maintain existing high standards and further improve levels of service.

Earlier this year Ofwat published its initial determination of prices and has now taken into account ministerial guidance and representation from Northumbrian Water, customer representatives and environmental and water quality agencies in reaching its final decision.

Northumbrian Water will now carefully consider the detail of the 300-page document from Ofwat.

Managing Director, John Cuthbert , said: “The document contains a number of changes from the initial determination which we now need to study and consider in detail.

“We note that the regulator has addressed a number of points raised during the consultation and this initially appears to be a more balanced determination.

“Today’s announcement will allow us to improve water quality and reduce occasions when customers water supply can become discoloured by sediment being disturbed in the mains network. This is work customers have asked us to carry out.

“We are also pleased to see an increase in investment which customers have also called for to allow more work to tackle flooding from sewers.”