Water companies promise to cut bills by up to 10 percent from 2020

Water companies promise to cut bills by up to 10 percent from 2020

Monday, September 3, 2018

Water companies United Utilities and Severn Trent have pledged to cut bills for millions of customers and tackle leaks as part of new business plans.

United Utilities said it would cut bills by 10.5 percent in real terms between 2020 and 2025, a reduction of £45 per customer.

The water company also said it would invest £750 million in delivering a “major water resilience scheme” for customers in Manchester and the Pennines.

The company will aim to deliver a 15 percent reduction in leaks by 2025, according to its five-year business plan.

 

‘Delivering higher standards of service’

United Utilities boss Steve Mogford said: "We are cutting bills such that they will be lower in real terms in 2025 than they were 15 years ago, whilst also delivering higher standards of service, increasing resilience, delivering innovation and investing for the long-term."

Another water company Severn Trent said it will introduce a bill reduction of 5 percent, the largest price cut in two decades.

Severn Trent is also proposing a new “community dividend” of one percent of profits each year, to support communities in the region.

However, Thames Water said it would keep bills flat but will spend £11.7 billion on upgrades, including over £2 billion to “boost resilience and reduce leakage”.

In June the company was ordered to pay a total of £120 million to compensate customers over leakage failures. 

The company currently supplies more than 15 million people.

 

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