Bristol Water has announced that it cannot accept the regulator Ofwat’s determination of price limits between 2010-2015. The Company says that it has no alternative but to ask for the issue to be referred to the Competition Commission for review.

Bristol Water, which supplies over a million people and businesses in the West, says that during the long price-setting process it worked hard and innovatively to find solutions to a range of issues at the least possible cost to customers.

The Company’s proposals would mean the average household bill rising by 87 pence a week by 2015. Without that money, Bristol Water says it will:

• NOT be able to carry out enough maintenance and replacement of the company’s pipes, pumping stations and treatment works and they will deteriorate.
• NOT be able to supply enough water to meet rising demand from population growth.
• NOT be able to provide proper security of supply for over 450,000 people

“Ofwat’s decision does not allow us to do all this, “ said managing director Alan Parsons. “In our judgement, Ofwat has proposed a determination that is not in the best interests of current and future customers. What we must deliver will cost much more than Ofwat has allowed.”

He continued:

“We are aware that our proposals mean increasing customer bills. We have worked very hard to find ways to minimise the increase. What we propose would still represent great value for money – but we have also put in place extra help for customers who struggle to pay their water bills.

“Our customers have benefited from a long period when we have been able to minimise bills by stretching our assets’ working lives. Unfortunately, there are now a number of factors coming together that mean increased levels of investment cannot be deferred any longer. This inevitably means costs, and bills, increasing. We do not agree with Ofwat about the scope of necessary work and cost of dealing with these issues and so must ask the Competition Commission to review the matter.”What happens now?Like all the other water companies in the industry, Bristol Water had until January 26th either to accept Ofwat’s decision or to ask for a referral to the Competition Commission. The price limits already set by Ofwat for 2010/11 become effective in April this year.  The limits determined by the Competition Commission will take effect from April 2011.

Out of 22 companies in England and Wales, to date 10 of them have accepted the regulator's Final Determination. These are:

Northumbrian Water Yorkshire Water South East Water Anglian Water South West Water Severn Trent Water Dee Valley Water

Bournemouth & West Hampshire Water

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