Customers benefit from company results

06/06/2007

Water and sewerage charges will be less than expected for the next two years, Northumbrian Water revealed today.

Announcing a strong operational and financial performance for the year to March 2007, the company 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 Northumbrian Water bills - which are already amongst the lowest in the country - are now, and will continue to be, £10 less in real terms than they were in 1999 and by 2010 they will be the lowest in the country.

Northumbrian Water has been able to obtain funding for its massive investment programme at a lower cost than anticipated and will pass back savings of about £22 million to customers until 2010.

This year’s average bill for both water and sewerage services is £285.

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 customers will also continue to benefit from a massive improvement programme.

In 2006/07 Northumbrian Water Group has invested £225 million in further improving water quality and the environment. In the North East of England this includes:

• 411km of water mains renewed or relined
• 2942km of distribution mains flushed clean
• 129 properties removed from the risk of flooding
• 98 sewerage overflows replaced or improved to protect rivers and streams
• Additional treatment facilities being completed at major drinking water treatment works at Horsley and Whittle Dene in the Tyne Valley and Warkworth in Northumberland serving Tyneside and South East Northumberland to protect supplies at a cost of £37million
• Work on a new service reservoir underway to safeguard supplies for Durham
• Refurbishment work undertaken at water treatment works near Consett and Darlington
• Sewerage maintenance schemes on-going at Marske, Cleveland and Bran Sands, Teesside and Sherburn, County Durham
• Leakage targets met
• Best bathing water results achieved
• Top quality drinking water maintained

Full detail of Northumbrian Water’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