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Monday, 11 January 2016 10:26

Portsmouth Water sets out Charges Schemes for 2016/17

Portsmouth Water has set out details of its Charges Schemes for 2016/17 in a letter to Cathryn Ross, Ofwat Chief Executive, quantifying the price changes its customers will see in their water bills from 1 July 2016.

The letter from the Board of Portsmouth Water has told the water sector regulator that it is in a position to assure that its Charges Schemes for 2016/17 will be published by 1 February 2016 and that these will comply with its regulatory requirements.

PORTSMOUTH WATER HOUSEHOLD AVERAGE BILLS 16-17The letter also includes company-level information on the number of customers, revenue and average bills for 2016/17.

The Board has confirmed that the charges result in compliance with the three revenue caps of wholesale, household retail and non-household retail and that the costs associated with Open Water are appropriately recovered from Portsmouth Water’s  non-household customer base only.

The Board also confirmed that the bill “differential” for household customers using the same volume of water but charged on a different basis i.e. measured and unmeasured, is circa £35 which reflects the additional cost incurred in metering.

Portsmouth Water has assessed the effects the new charges have on customers’ bills for a range of different customer types. The letter says;
“The Board can confirm no group of customers will experience a change in bills greater than 5% as a result of the proposed price changes. Over 30 groups of customer have been reviewed, including the average in a class and an upper and lower customer in the class as required by Ofwat guidelines.

Portsmouth Water has used consultancy Frontier Economics to provide external assurance that the proposal is compliant.

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