Business Weekly - Cambridge, UK

Government regulator, Ofwat resisted Anglian Water’s calls for an increase in bills for the remaining 12 months of the current five year price review period.

Ofwat said it was considering actually lowering prices in the new price review period, which starts in April 2005.

Huntingdon based Anglian said its request was a reaction to the extra costs it faces because of higher construction prices and increasing customer debt owing to the ban on disconnection of domestic customers, among a number of other factors.

Ofwat conceded that part of the claim was justified but pointed out that Anglian had received funding in lieu of sewage treatment legislation that never came into force.

DG of water services, Philip Fletcher said: “We have looked closely at the company’s claim. Taking into account the funding the company received for work no longer required, as well as their extra costs, we believe customers should in fact, benefit from lower bills.”

The decision is subject to a public consultation, with a final decision to be announced on December 11. Anglian Water said it would be presenting further evidence before that date.

The company has also now disposed of its 49.8 per cent shareholding in Esval, the Chilean water and wastewater business, for £55m.