Northumbrian Water warns families could face bill increases after law change

Oct 2 2009 by Adrian Pearson, The Journal

FAMILIES in the North East could be forced to fork out an extra 10% for their water bills if an obscure new Bill is pushed through Parliament, suppliers warned last night.

Northumbrian Water, which supplies all of the North East, fears the Department for Environment, Food and Rural Affairs (Defra) will make the company responsible for thousands of miles of extra pipes.

At the moment, home owners are accountable for maintaining the supply pipes which run from property boundaries into their houses. But as part of the Draft Flood and Water Management Bill, Defra is considering moving responsibility for those pipes and sewage systems to water companies.

With thousands of miles worth of underground pipes in an unknown condition, Northumbrian Water says such a change would force it to push up costs by 10% over five years.

Water bosses are currently lobbying MPs to think again. But if they lose their battle Northumbrian will “have no choice” but to ask regulator Ofwat for permission to pass on the costs to customers who currently enjoy some of the country’s lowest bills.

Average bills of around £300 could rise by up to £30 on top of planned increases of around one per cent above inflation.

And North East water chiefs say they are fighting a double whammy of threats to customers.

Northumbrian Water says it still has not received assurances that Defra will not ask it to subsidise water bills in the South East.

In an independent review on water charging there are proposals for a national pricing structure – which would mean North customers paying more and those in the South paying less.

Durham City MP Robert Blackman Woods has already warned about a “disgraceful” consultation that could see Northumbrian increase its bills as part of a plan to ensure Southern families do not have to face further steep rises.