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Ofwat blamed for high water bills by committee of MPs
Ofwat blamed for high water bills by committee of MPs
This is a duplicate of the Blog Entry made on: 13th January 2016 15:46
This is a duplicate of the Blog Entry made on: 13th January 2016 15:46
A report from the Public Accounts Committee (PAC) said the regulator consistently overestimated water companies' costs. It said many householders would be "appalled" to learn their water bills could have been smaller. Ofwat said it would "carefully consider" the PAC's report. Household water bills averaged just under £400 per year last year.
Windfall
The committee of MPs said Ofwat regularly overestimated companies' financing and tax costs when setting price caps. The PAC said this meant the companies had made windfall gains of at least £1.2bn between them. It is asking Ofwat to review the way it assesses companies' cost of debt and tax and report back on how it intends to improve. The MPs also said they were worried about customers in areas where water was scarce paying to develop new capacity, despite the possibility that water trading between companies would be brought in in the future.....Read more here
Windfall
The committee of MPs said Ofwat regularly overestimated companies' financing and tax costs when setting price caps. The PAC said this meant the companies had made windfall gains of at least £1.2bn between them. It is asking Ofwat to review the way it assesses companies' cost of debt and tax and report back on how it intends to improve. The MPs also said they were worried about customers in areas where water was scarce paying to develop new capacity, despite the possibility that water trading between companies would be brought in in the future.....Read more here