Veolia Water Southeast bills announcement

Veolia Water Southeast (VWSE) has announced that its prices for 2010/2011 will rise by 1.5%. Ofwat has approved an increase of 1.2% in charges to allow the company to continue with its extensive capital investment programme with an additional allowance for inflation of 0.3%. The 2010/2011 charges were agreed with the regulator last year as part of a five year plan covering the period 2010-2015. The rises for 2010/11 will take effect from the beginning of April.

Veolia Water Southeast Managing Director Nevil Muncaster said:

"Average metered bills will be 46.8p per day (£170.70p a year) and the average unmetered bill will be 62.4p per day (£227.62p a year). More than 75% of customers are already on meters and the number of customers metered will rise through the year as the company progresses a compulsory installation programme.

"We are continuing to increase company efficiency to ensure that we hold down costs and offer the best possible value for money to our customers. As a result high quality drinking water from the tap costs just over 1p for 10 litres. At the same time we have to continue to make significant investments in our sources and in our treatment and distribution systems to ensure future security of supply. The price rise will help fund this extensive investment programme.

"Veolia Water Southeast is currently completing a £33m investment programme for the five years to April 2010 which has included the development of new sources, the upgrading of treatment plants and the construction of new strategic mains. Further significant investment of £34.3m is planned in the next five years.

"We appreciate that these are still difficult times for customers as the economy recovers and we will be continuing to support anyone who has genuine difficulties with payments. We will also take action against those who can pay but refuse to pay, as this minority puts an unfair burden on the majority of our customers."