Job cuts are in the pipeline at United Utilities pending the outcome of the current price review by water industry regulator Ofwat.

Possible reduncancies could be as high as 250. Most of the jobs at risk are believed to be at United Utilities’ Warrington head office. United Utilities has declined to comment on the figures while a 90-day consultation process with staff and unions over job cuts is ongoing.

A United Utilities spokesperson said:

"We are consulting with the unions to explore how we can maintain the strength of our business given the current economic challenges.

"Our aim is to continue to deliver high-quality water and wastewater services to our seven million customers and keep their water bills low."

In its final business plan for the upcoming AMP5 2010-2015 investment cycle United Utilities had proposed an average annual household  bill of £404 by 2014-15. In July Ofwat suggested an alternative figure of £359 in its initial Draft Determination for the company – an 11% reduction which could have a significant impact on United Utilities’ plans for the next five years.

Ofwat has proposed even greater reductions for a number of the other water and wastewater companies in England. Since then, negotiations about the final amounts the water companies will be allowed to charge their customers have been ongoing. The regulator is due to publish its final decisions on 26 November.

If Ofwat sticks with its proposed tough new price controls,  other water companies may also have to consider possible reduncancies.

Water UK, the body which represents all UK water and wastewater companies, has lobbied strongly against Ofwat’s suggested cuts. The organisation believes that the successful implementation of the government's water strategy for England and Wales Future Water may be jeopardised by harsh final determinations in the current price review.

Pamela Taylor, Water UK Chief Executive, recently commented:

"Everyone accepts that sustainability requires continuing investment at a high level. But Ofwat's proposals put financial stability at risk by setting aside the long-term in favour of a short-term approach to prices. Short-term decision-making could affect service quality and prove a poor bargain for customers."