Thames Water News Update: Labour Urge Ofwat to Prevent Price Spike

Labour Ofwat Thames Water

Thames Water news update: After the proposed, unprecedented price hike by water supply company Thames Water, Labour have stepped in to urge them against it.

The water company regulator Ofwat have been urged not to allow Thames Water to increase their prices by such a high percentage. The proposal from Thames Water included an 8% hike in the bills for their average customer.

In addition to this, they have made noises about adding a once only charge of £29 to the bills for 2014/15 but the request includes the company spreading the cost over a number of years so as not suddenly hit their customers with the fee.

Since these proposals have been voiced, Thames Water have been in the news regularly. The argument behind the price increase is that the company need to cover the costs of the ‘super-sewer’ which will most likely cost the company approximately £273million.

Thames Water News Update

Ofwat set a five-year price span in 2010 with the idea that this would regulate prices for the five year period and leave the customers favoured. Labour have now stepped in because this price increase comes in the middle of this five year period and will go against the plans designed by Ofwat.

With the charges being more than twice the rate of inflation and the knowledge that Thames Water made £549million of profit last year, Labour have criticised the proposed price rise.

The general feeling amongst the councillors of the Westminster Labour group is that the citizens of the cities of London and Westminster are in the midst of a crisis with regards to their finances. The country’s residents, let alone those specifically in London, are struggling to find the balance for survival and the monthly bills are simply becoming more and more stressful.

With water being one of the biggest outgoings for households and salaries dropping monthly for the past three years means that yet another price increase will residents crippled – particularly given the five year long regulations settled by Ofwat in 2010.

The chief financial officer at Thames Water has expressed his distress in having to increase their customers’ bills and has explained that their request to spread the cost over more than one year is designed to buffer the impact on their customers but the power lies with Ofwat.

To contact Thames Water and discuss your bill or anything regarding the service you receive, or would like to receive from the water supply company call the Thames Water phone number or visit the website: http://www.thameswater.co.uk/.

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