Why have our charges increased?

Overall our charges this year are reducing by 0.72%.

Against this background, the average unmeasured household bill is reducing by 0.6%, so unmeasured customers will essentially be paying the same amount to us as they did last year, whilst the average measured household bill is increasing by 1.1%.

The difference between the two groups is due to Ofwat’s requirements as to how the overall price reduction should be applied.

The changes will enable us to:

• Invest around £10 million so that we can survey nearly one million households to identify and solve low water pressure caused by shared supply pipes.
• Reduce leakage by 47 million litres a day between 2010 and 2015 to make sure that we have enough water to meet the demands of our customers.
• Invest more than £115 million so that about one and a half million customers can be served by more than one source of water. This will reduce the risk of floods leading to service failure.
• Invest around £6 million to protect treatment works from floods, which will benefit around 650,000 customers.
  

What is rateable value and how is it calculated?

The District Valuer on behalf of the Inland Revenue originally assessed rateable values.  They were based on the size of the property, the number of rooms inside the property, the amenities available and the overall location.

No new rateable values have been set since March 1990 following the introduction of the Poll Tax; alterations to existing rateable values are not possible.  Water Companies are still legally entitled to use this basis of charge.  We are unable to use council tax banding as a basis of charge.  All new properties built since 1990 are metered and therefore, rateable value does not apply.  Existing properties with rateable values have the option to have a meter installed.  For more details please ring 08457 090 646.

Metered basis of charge

Metered charges are made up of three elements, water supply, used water and surface water drainage.

Water supply and used water charges are based on the volume of water used.  This is measured in cubic meters (m3); 1m3 is equal to 220 gallons/1000 litres of water.  The amount used is calculated based on the difference between two meter readings reflecting usage.

What is surface water drainage?

These charges are levied for the removal and treatment of surface water or rainwater from the property.  Charges are based either on the rateable value of the property or based on property type – Flat/Terrace, Semi Detached, Detached.   If your charges are currently based on rateable value you can opt to be billed based on property type.

New charges – Unmetered customers

The average unmeasured household water bill (full service) is essentially unchanged from last year, as it is reducing by just 0.6% for 2010/11.

For Water supply charges the average increase is 4.7% and for treatment of waste water the average charges have reduced by 5.8%. 

Please be aware that charges do differ depending on the rateable value of your property and where you live.

New charges – Metered Customers

The average metered household receiving both water and sewerage services will see an increase of 1.1% overall. 

Water supply charges are increasing by 5.0%, whilst waste water treatment charges are reducing by 0.8% and surface drainage charges are reducing by 5.8%.  

Individual measured customers may see and increase slightly higher or lower than the average depending upon their level of consumption.