Ofwat launches water pricing consultation

Ofwat - the regulator of drinking water quality and wastewater provisions in England and Wales - has launched a consultation into new pricing limits.

In 2009, the organisation set a cap that water and sewage companies could charge customers for their services between 2010 and 2015.

Ofwat is now looking to gauge public opinion on how it should calculate limits in the future, with another new pricing structure expected to be introduced in 2014.

Leaders at the group have suggested the sector faces some significant challenges in the future, with population growth, climate change, affordability concerns and rising consumer expectation all being factors needing to be addressed.

The consultation will look at ways to incentivise large water suppliers to ensure they are investing in sustainable infrastructure.

"In many areas water resources are becoming more stretched. We need to become smarter in how we value, manage and use our water," commented Ofwat chief executive officer Regina Finn.

Northern Ireland Water recently revealed around 3,000 properties in the country had seen their drinking water quality compromised.

Posted by Lauren Steadman