SAGA — Doing things properly

Water bills soar

In 2000 the water companies of England and Wales were forced by Ofwat to slash prices by £12.5% and keep them low for five years, writes Paul Lewis

But the companies could not keep prices down and repair leaky pipes, so in 2005 they were allowed to put bills up each year by an average of 4.2% above inflation. The money was to be spent on renewing mains, many of which date from the reign of Queen Victoria. This year bills will rise by 7%, an average of £20, to a record £312 a year.

Despite this, some companies are not achieving their target to cut leaks, which are running at a staggering 149 litres a day for every property. That is almost exactly the same as the 151 litres each of us uses a day, so leakage is like having another person in every home.

Last year Thames Water, with twice the leakage of other companies, missed its target for the sixth year and was forced to spend an extra £150m. This money had to come from shareholders, not customers.

One way to pay less for water may be to have a meter fitted. Barely a quarter of us have one but many people who live alone or in small households would save if they did so. Meters are fitted free by the companies in England and Wales.