BANK ACCOUNTS
Water and sewage bills set to increase over 2012
The average household water and sewage bill across England and Wales is to rise by 5.7% over the next 12 moths, according to industry watchdog Ofwat.
This price hike could add an extra £20 to the average bill, increasing rates to £376 throughout 2012/13 from £356 in 2011.
Ofwat decides on how much water and sewage companies can charge consumers up to 2015 and now the regulator has proposed that companies can raise prices across England and Wales. However, this increase is in line with inflation and the rate of inflation is added to bills on a year-by-year basis.
The new price hike will come into effect on on 1st April 2012 and apply until 31st March 2013, when they may be reviewed again. Bristol residents will see the highest price hike of £15, double the industry average of £8. This reflects an 8.8% rise in water prices for people living in Bristol.
Portsmouth and Veolia Central residents, however, will only see a £3 price hike in comparison.
"We understand that any bill rise is unwelcome, particularly in tough economic times. Inflation feeds through into water bills and this is driving these rises,” said Regina Finn, Ofwat Chief Executive Officer.
The price hike has not come at a good time for UK households already struggling to cover the extortionate cost of living. Whilst six of the leading energy suppliers have announced price cuts over the last month (knocking off an average of £34 off the annual bill), water rates will increase by £20, leaving households just £14 better off.
Joanna Elson, from the debt charity Money Advice Trust believes that this price hike puts households at risk of debt.
“The sobering fact is that paying water bills is becoming increasingly difficult for many households across the country, and it doesn't seem to be a problem that will go away any time soon. Indeed planned price rises will most likely make the problem even worse.”
Many are turning to credit cards or overdraft facilities with their bank accounts to cover the cost of bills.
Tags: BANK ACCOUNTS, increasing rates, rising living costs, water price hikes