Water charges increase is "outrageous"

Local Labour Euro MP Brian Simpson has criticised a decision taken by the water industry regulator, OFWAT, that will see the average household's annual water bill rise to over £370.

Labour's Brian Simpson has written to OFWAT's Chief Executive, Regina Finn, asking her to justify the "outrageous" pricing changes.

In the changes that come into effect from April 1, OFWAT has allowed water companies to use a higher inflation measure for water pricing, with the average household's yearly water bill now set to increase by £16.

Whilst the Government uses the lower Consumer Price Index (CPI) rate to determine increases to benefits and pensions, OFWAT has allowed water companies to increase charges by using the higher Retail Price Index (RPI) amount.

"This sounds like double standards to me and is outrageous at a time when hard-pressed families are already dealing with VAT rises, higher fuel prices and the prospect of job losses thanks to the policies of the Tory-LibDem government", said an angry Mr Simpson.

"If the water regulator is happy to allow price increases at the higher level, then regulators in the gas, electricity and transport industries are likely to do the same", added Labour's Mr Simpson who sits as Chairman of the European Parliament Transport Committee.

Water bills in the North West will rise by 4% in April and will continue rising with the higher RPI until at least 2015. In some areas, such as the North East, the rise will be 8%; a precedent that alarms Mr Simpson.