Big Water Price Hike

5.25.00pm GMT Mon 6th Dec 2004

Thames Water are to increase water bills next year by £36 as the first stage in a series of price rises approved by the water regulator, Ofwat.

Thames Water says that it will use the money to make £3billion of investment including replacement of leaking water pipes, developing new water sources, reducing sewage pollution and sewage overflows into rivers and reducing smell problems at Mogden.

Vincent Cable MP, who recently tacked environment ministers in Parliament over Thames Water's plans, said that: "The water bills will not be popular since the increases are far in excess of inflation. Although the promised improvements are welcome we need to be sure that they live up to their billing. Thames Water has repeatedly promised to deal with the Mogden odour problem but its minor remedial works have achieved little without covering the plant. The company promise to reduce - rather than stop - storm spillages but until we know how much of a reduction is planned it will not be possible to pass final judgement on the programme. I have written to the Chief Executive for clarification of these points."