Charges and tariffs
We set our charges according to price limits that we agree with Ofwat every five years. The last of these reviews was in 2014 when prices were set for the period between 2015 and 2020.
Our charges and any changes to them are controlled by law, in particular, by the Water Industry Act 1991 and by our operating licence. Each year the total amount that we are allowed to charge our customers increases in line with inflation (the Retail Price Index as published in November of the prior year). There are also some adjustments to reflect the need for new requirements, efficiency and the standards we have achieved. The fact that charges may increase at a rate above inflation reflects the significant amount of investment required to achieve the necessary standards for your water supply.
Both measured and unmeasured water charges for customers whose Standard Industrial Classification falls within categories 1-5 of the 1980 Standard Industrial Classification will be subject to VAT at the standard rate. For all other customers, measured and unmeasured water charges will be zero-rated.