Water bills for households in Lincolnshire served by Anglian Water will rise by £12 on average this year.
Anglian Water, which covers Lincolnshire and East Anglia, will raise its bills by 2.8%, slightly below the inflation level at the time prices were set.
This will mean bills will rise by 4% (£12) for customers. The 4% rise takes into account the rise in inflation, plus an extra 1% for Anglian Water’s investment programme, costing £466 million.
The rate of inflation is added to bills on a year-by-year basis. Since 2009-10, the average bill has risen slightly below (by 0.7%) the rate of inflation.
The rise in price will mostly affect customers who are not using a water meter. Around 70% of Anglian Water customers use a water meter.
The majority of water and sewerage services in the UK had to raise their prices due to changes in the level of inflation, which is currently at 3%.
Martyn Oakley, Anglian Water’s Customer Services Director, said: “The real winners this year will be those customers who make the switch from an unmeasured bill to a water meter.
“For those already on a meter or who stick with bills tied to the old rateable value of their home, the rise will be about 4%, although customers with a meter will see smaller rises than those without.”
He added: “[Anglian Water’s investment programme] will allow us to maintain and improve our essential equipment above and below ground, support growth and recovery in these tough economic times, and protect our environment against the impacts of climate change.”
More specifically, Anglian Water will spend the £466 million on replacement and renewal of water mains, costing around £25 million, £15 million on an advanced digestion plant to produce renewable energy from sewage, £7 million to connect homes to mains sewers for the first time, £6 million on a new water treatment works near Louth and several other projects across the region.
Across the UK, bills will rise on average by £13. Thames Water will rise its prices the most, with a 5.5% increase for customers.
Regina Finn, CEO at Ofwat, the water and sewerage regulator, said: “Customers can’t choose their supplier. It’s our job to make sure they are protected.
“Back in 2009, companies wanted bill rises of 10% above inflation. That didn’t chime with what customers told us they wanted, so we said they could only increase bills in-line with inflation.
“We understand that there is huge pressure on household incomes, and any rise is unwelcome. Inflation is driving these increases.”
The bill changes for 2013-14 year will come into effect on April 1 through to March 31, 2014.