| In December 2004 the Company received from Ofwat notification of price limits for the five years commencing 1 April 2005. This confirmed that the customers in the Tendring region will be the only people in the country to enjoy a decrease in water bills over the next five years. Whilst water bills nationally are set to rise by £26 (before inflation), our average bill for water is set to fall by £4 a year by 2009-10 (before inflation). |
 |
| Price Limits (before inflation) |
2005-06 |
2006-07 |
2007-08 |
2008-09 |
2009-10 |
Annual Ave |
| Tendring Hundred |
-1.8% |
-0.7% |
+0.6% |
-0.3% |
-0.5% |
-0.5% |
| National Average |
+9.6% |
+3.9% |
+3.2% |
+2.5% |
+2.0% |
+4.2% |
|
|
| We are confident that Ofwat’s price limits will allow the Company to continue to provide a high quality and reliable water supply at a price below the level currently being charged. At present we offer the best overall service to customers of any water company in the industry (2nd, 1st and 1st in Ofwat’s Overall Performance Assessment in the last three years) and there is no reason to believe that this will change under the new price limits. |
|
| A key part of our strategy over the next five years is the construction of two new reservoirs and pumping stations to serve Walton, Frinton and Clacton. These will deliver real benefits to over half of the population of the Tendring region. |
|
| The Company remains pro-metering
and just as we all pay for other utilities on the
basis of actual usage, we believe metering is the
fairest way to pay for water. The proportion of
properties charged by meter is now over 60%, which
is the highest rate in the country. We are keen
to see this figure rise even further and are happy
to assist customers in making the decision whether
or not to switch to a meter. As well as representing
the fairest way to pay for water, metering helps
manage the demand for water, prevents waste and
saves resources. This all helps ensure that a continuous
supply of water can be maintained, even during the
driest and hottest summers - just like we experienced
in 2003. During 2003 the peak demand for water was
20% below that seen when similar extreme conditions
were last experienced in 1995. Overall, since 1994
the number of properties served by the Company has
increased by 8%, yet the total volume of water supplied
to all customers has fallen by 15%. |
|
| As with all other water companies,
we operate under the terms of a licence that states
what we can and cannot do and various regulatory
bodies ensure our adherence to this. As well as
monitoring day to day operations, Ofwat reviews
water companies' future plans for services and prices
every five years. Other regulators
of the water industry include the Environment Agency,
which has a duty to secure the proper use of water
resources and the Drinking Water Inspectorate, who
check that the water we supply meets the standards
set in the Water Supply (Water Quality) Regulations
2000. |
