Water watchdog agrees £21bn investment

Water companies will be able to invest £21bn in infrastructure between 2010-15 under new pricing proposals put forward by industry regulator Ofwat today.

The watchdog published draft proposals for the prices water and sewerage companies can charge their customers during the five year period. Its proposals will see household bills remaining broadly stable until 2015.

The price structure means almost £21bn will be pumped into helping maintain and improve services to consumers.

More than £4bn will be invested in maintaining and improving drinking water quality, as well as protecting the environment.

Regina Finn, Ofwat Chief Executive Officer said: "We understand times are hard and we have listened to what customers have told us. They want a safe, reliable water supply at a reasonable cost.

"People can shop around for the best deal on many things, but not water. That's why we've challenged the companies' plans rigorously to ensure that customers get the best value for money from the £21bn of investment."

Companies, customers and interested parties now have the opportunity to present their views on Ofwat's proposals. Final limits on the prices companies can charge will be published in November. New bills will then come into effect in April 2010.