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Water customers braced as bills to soar by 8%

Householders are facing an inflation-busting hike in water bills.

Southern Water will increase its bills by 8.2% – more than any other utility provider.

Customers’ yearly bills will be increased by an average of £31 to £416 from April.

A spokeswoman for Southern Water said the charges are in line with the inflation figure in November (5.2%) plus another 3%.

The increase is the latest in a string of above-inflation rises from Southern Water.

In 2007/08 bills increased 3.5% over inflation, in 2008/09 by 5.8% more, and last year by inflation plus 2.6%.

A spokeswoman said as well as contributing to day-to-day operations, the above-inflation increase funds service improvements for customers.

She said: “Between 2010 and 2015 these will total £1.8 billion across the south-east.

“This ensures our customers receive drinking water that is among the best in Europe, helps waste water treatment works to meet stringent environmental standards and also safeguards water supplies.”

The firm made a profit of £32 million in the year ending March 31, 2011.

They paid £77 million in dividends to shareholders, resulting in a loss for the financial year of £45.1 million.

Chief executive officer Matthew Wright was appointed in March last year from United Utilities, where he was managing director.

The spokeswoman said: “Ordinary share dividends of |£77.1 million were paid to shareholders during 2010/11. This consisted of a final dividend of |£35 million relating to 2009/10, and an interim dividend of £42.1 million for 2010/11.

"The directors have not declared a final dividend for 2010/11. Southern Water is a private limited company, therefore the salaries of all staff are confidential.”

Southern Water is installing 500,000 water meters in the south-east.

"It says customers who have a water meter installed use 10% less water. The average 2012-13 water bill for Southern Water customers who have a meter and pay for what they use is £57 less than for those who are not metered – £391 compared with £448. Since 2010, the metering programme in Sussex has visited Horsham, Littlehampton and the surrounding area, and Crawley.

"It has started meter installations in the western part of Worthing, and will move across the rest of Worthing borough and Adur district this year.

"South East Water said its average household bill will rise by 4.6% to £204. The firm has around 250,000 customers in Sussex.

"A spokeswoman said: “Everything we buy or source is more costly too.”

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Comments(15)

Fight Back says...
4:07pm Wed 1 Feb 12

You have to question the intelligence of a company that starts with a profit and then pays so much in dividends that it ends up with a loss !

So we have Southern Water hiking charges, huge increases late last year in gas and electricity, petrol at it's highest cost for many a year and yet the Greens STILL want to increase the burden on people by increasing council tax, charges for parking permits and other services ???? They clearly don't live in the real world.

midSussex says...
4:19pm Wed 1 Feb 12

Utterly shameful that this can be allowed. Where is the regulator in all of this? To generate a loss as a result of dividend payments and then increase charges above the rate of inflation is the action of ill-regulated monopoly. I think I'll change my water supplier...oh funny that, I can't.

Carlas mum says...
4:24pm Wed 1 Feb 12

I am amazed that they are going to increase water rates by 8.2%, with the noise and the smells we residents in Lancing and East Worthing have had to endure this year, they should be giving us a refund.

m4mt7ah says...
4:27pm Wed 1 Feb 12

I have quite a few trees growing in my garden but I have checked and there is no money growing on any of them!!!

a person says...
4:40pm Wed 1 Feb 12

The same as if you live near an airport you will hear planes.

The thing is if you move near to a sewage works you will have a smell of sewage in the air.

The sewage works was there before the houses were built.

That is the reason why the homes around the East Worthing treatment works are usually lower in price than other areas that are not around the East Worthing treatment works .

Fight Back says...
4:48pm Wed 1 Feb 12

a person wrote:
The same as if you live near an airport you will hear planes.

The thing is if you move near to a sewage works you will have a smell of sewage in the air.

The sewage works was there before the houses were built.

That is the reason why the homes around the East Worthing treatment works are usually lower in price than other areas that are not around the East Worthing treatment works .
Thank you for your contribution - not sure what it adds though !

monkeymoo says...
5:09pm Wed 1 Feb 12

I suppose someone had to pay the massive fine Southern Water received recently....shame its the customers!

As for "finest drinking water in Europe" have they ever been to Europe? Most of the water runs through filters straight from the mountain springs...NO CHLORINE OR FLORIDE ADDED!!

a person says...
6:24pm Wed 1 Feb 12

Fight Back wrote:
a person wrote:
The same as if you live near an airport you will hear planes.

The thing is if you move near to a sewage works you will have a smell of sewage in the air.

The sewage works was there before the houses were built.

That is the reason why the homes around the East Worthing treatment works are usually lower in price than other areas that are not around the East Worthing treatment works .
Thank you for your contribution - not sure what it adds though !
It is in reply to Carlas mum
Saying about the smell coming from the sewage works ..
So I assume they chose to live near the sewage works.

a person says...
6:25pm Wed 1 Feb 12

monkeymoo wrote:
I suppose someone had to pay the massive fine Southern Water received recently....shame its the customers!

As for "finest drinking water in Europe" have they ever been to Europe? Most of the water runs through filters straight from the mountain springs...NO CHLORINE OR FLORIDE ADDED!!
There is no fluoride added to the water in this area .
The government want it added but so far southern water have not done it.

Brighton_Belle says...
6:57pm Wed 1 Feb 12

Brilliant. It was cheaper when I wasn't on a meter.

Any danger of them using that money to repair leaks and improve customer service?

I hate not having a choice of supplier.

a person says...
7:42pm Wed 1 Feb 12

Brighton_Belle wrote:
Brilliant. It was cheaper when I wasn't on a meter.

Any danger of them using that money to repair leaks and improve customer service?

I hate not having a choice of supplier.
I think they have been reading up on how to boost employee morale,

I heard they have cut the staffs pay , have a longer working day ,
so now only get single time for overtime .

If that doesn’t improve morale and customer service ,I think they might have got it wrong.

D Merrett says...
8:48pm Wed 1 Feb 12

I agree with the great majority of comments. Now the stupidity of old Tory policy to sell, sell sell is being felt. Every day we wake up to more negative head-lines. They allow the utilities to simply increase charges, whilst their focus remains fixed on their individual political standing in Europe and the World. We really are not interested Mr Cameron in hearing you speaking at another faceless conference in Europe. William Hague addresses the Security Council, whilst they have no understanding of hardship to every single person. They fight for Libya whilst the normal folk have their savings reduced and the Tory protected institutions get richer. It makes you feel like stopping payments totally and let the system try and cope in gathering the money in. Oh but being British we must just take this medicine without speaking out or taking direct action.

angrymonkey says...
9:59pm Wed 1 Feb 12

poor service call center staff not having a clue cant move to other company im sure some money be used to pay the regulators to keep quite again.

AngelicDevil says...
10:49am Thu 2 Feb 12

I'm not complaining (yet...), I'm moving into my new property shortly which is fitted with a water meter....At least now I'll be paying for what I use, instead of having to pay the same amount as the family of 5 next door!!!

Bring it on!

plantwoman says...
11:46am Thu 2 Feb 12

This is obviously to pay for the water meters that they're installing in every home in the Southern Water area. We in Sompting are due to have ours sometime this year - we apparently don't have a choice in the matter.

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