Water prices set to rise

The cost of water treatment schemes means rising bills

The price of water may rise for people living in Wales, industry regulator Ofwat has warned.

Householders in Wales already face the second highest charges for water services.

Now the price limits set by Ofwat for Welsh Water/Dwr Cymru may have to be increased in 2001.

The reason for the increases is the need for new waste treatment and water quality statutory obligations.

Welsh Water requested a review of its prices after a greater number of customers moved to meters than was allowed for when the price limits were set, cutting the company's profits.

The company also said it faced extra expense for work to meet new waste treatment and water quality standards.

Bills will rise over three years

Ofwat said on Wednesday that if these standards did become statutory obligations by December, then this would increase Welsh Water's costs enough to warrant a price rise.

The regulatory body has estimated that the average customer could then see the water bill increase, over the next five years, by £3 from £273 to £276.

Customers without a meter could face a greater increase of £5 over the same period.

Ofwat is waiting until December to hear whether the new quality standards are confirmed as legally binding by the Drinking Water Inspectorate and the Welsh Assembly before it makes a final decision.