Bristol Water fights Ofwat pricing plan

   Ofwat was set up to protect water industry customers

Bristol Water has rejected a decision from the water industry regulator Ofwat which would stop it from substantially increasing water bills.

The company has referred the matter to independent public body, the Competition Commission, for review.

In 2009, Bristol Water unveiled plans to increase the average household's water bill in its area from £157 to £202 a year by 2015.

Ofwat has ruled that annual bills should rise to £168 by 2015.

Rising demand

Bristol Water supplies more than one million people and businesses.

The company says that without its planned increase it will not be able to carry out adequate maintenance work or supply enough water to meet rising demand.

Water companies have until 26 January to accept Ofwat's decision or refer it to the Competition Commission, which conducts in-depth inquiries into matters including the regulation of major industries.

A Bristol Water spokesman said the review process would take six months.

The price limits set by Ofwat for 2010/11 become effective this April, while limits determined by the Competition Commission will take effect from April 2011.

http://www.bbc.co.uk/

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