A steady stream of pressure on water companies across England and Wales from the Consumer Council for Water has resulted in positive signs that customers are beginning to benefit more from annual water companies' profits.
The independent water watchdog met with, and wrote to, all water companies in the run-up to the companies' annual financial announcements to make sure that customers were not left out when the profits started rolling in.
Dame Yve Buckland, Chair of the Consumer Council for Water, said: "We have challenged the companies to demonstrate to their customers the real improvements in service delivery, and additional investments they have been able to make as a result of healthy profits.
"Now that we have come to the end of the profit reporting period we believe that there is a better balance between returns to shareholders and investors and the benefits for consumers."
The Consumer Council for Water has been particularly pleased with the response from Northumbrian Water (which also runs Essex and Suffolk Water). This group has chosen to limit price increases for their customers to inflation only (RPI) for the next two years. This means that the company will not take up the additional increase in prices already agreed by Ofwat for 2008-10. Northumbrian Water also came out highly in a recent survey of customers who felt it was giving good service and value for money.
The Consumer Council for Water also commended Dwr Cymru/Welsh Water, which retains the money it makes in the business for the benefit of customers. The water and sewerage company has also increased dividends for customers to £20 this financial year.
Several other companies, such as Anglian Water and Yorkshire Water, are also spending more money on customer-related improvements in response to the Consumer Council for Water's challenge.
Yve Buckland added: "These companies, particularly Northumbrian Water and Dwr Cymru/Welsh Water, are setting new standards in the industry. This really demonstrates that customers are right at the heart of their business and financial success."
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