Five years plans to cut down the bills of customers were submitted by various water companies to Ofwat, the industry regulator.
Severn Trent Water said that there will be a reduction of five percent in bills in real terms. On the other hand, United Utilities disclosed that the customers will be paying 10.5 percent less under the plans for the period between 2020 to 2025.
Thames Water, the supplier of the City of London, has revealed that it will be investing a total of £11.7 billion on the improvement of infrastructure, service, and efficiency. £2.1 billion of the said amount will be ring-fenced in order to lessen leakage, however, the bills will be unchanged.
Steve Robertson, the chief executive of Thames Water, stated: “Our proposals are ambitious, well-costed and widely-supported by our customers, who agree we should prioritise the most vulnerable.”
He added: “Bills will be flat in real terms over the five-year period and our shareholders will receive annual distributions of around £20m as we prioritise investment on significantly improving service.”
The Thames Water boss confirmed that he has already deferred his £3.75 million bonus as his firm sets out to improve its customer service.
Ofwat will be examining the five-year business plans before releasing an initial assessment that is set to be published at the end of January next year.
John Russell, the senior director for strategy and planning at Ofwat, stated: “We’ve reached a key milestone in our price review process.”
He added: “From now until January 2019, we’ll pore over each and every business plan and we’ll be looking for evidence that they are robust, ambitious and, crucially, that they have been shaped by customers.”
He concluded: “All companies have had an opportunity to develop high-quality plans, but where plans aren’t sufficiently ambitious or stretching, we’ll step in to protect customers and the environment.”