LONDON: Britain’s water regulator blocked an eight percent price hike proposed by the country’s biggest water company, Thames Water, taking action against soaring household utility bills which have risen up the political agenda.
Utility bills have become the subject of national debate since several energy firms unveiled sharp price increases and the opposition Labour Party promised a freeze on bills, fanning wider concerns among voters about the rising cost of living.
Regulator Ofwat confirmed in a statement yesterday that it rejected Thames Water’s bid to raise charges by almost three times the rate of inflation for 2014-15, something it said in October that it planned to do so.
We said we would challenge Thames application, in the interests of customers. We did just that and on the evidence provided we are not convinced that an extra bill increase is justified, Ofwat chief regulation officer Sonia Brown said.
Thames Water, which provides water and waste services to 14 million households in and around London, can make an appeal to Britain’s competition authorities, Ofwat said. “We will review the decision carefully before deciding on our next steps,” Thames Water said.
Water pricing could face the same political scrutiny as energy bills after Prime Minister David Cameron said last week that he would take action to help households struggling to meet rising water bills.
Four of Britain s six biggest gas and electricity companies have over the last month raised their prices by between 8.2 percent and 10.4 percent.
Late last month lawmakers summoned the firms to justify the increases, which energy executives blamed on wholesale prices, other costs and levies linked to government programmes, brushing off allegations of market rigging.
Reuters
