Charges and tariffs
Each year 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.
The formula for setting our charges is laid down in the licence under which we operate. The formula is RPI plus or minus K; RPI is the rate of inflation or Retail Price Index in the November prior to the start of the charging year. K is an adjustment factor, which is set individually for each water company by the Director General of Water Services Regulation Authority (Ofwat) every five years.
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.