Why? Surely Ofwat ought to do like Oftel did with the phone companies (well BT) and say rises at LESS than RPI.
I cannot get my head around why Ofwat or the government would allow increases above inflation. If they need to invest in pipelines and so on then that needs to come out of turnover or shareholders profit or increased efficiency. How hard can it be to carry some (free) water from( free) reservoirs and to carry away and treat the waste in (free) pipes ?
Bad idea selling off the utilities in the long run. Electric, water and gas are going to bite hard in the coming years.
varche
But the water has to be gathered in resorviours and we need more of them; the water requires treatment, and then it has to be pumped out to all of us. Many mains date from Victorian times so urgently require replacement, and to make matters worse the sewerage system is also falling apart in our great cities due to age and needs rebuilding.
All this will cost billions of pounds, and if we want our water supplies to continue (especially when the climate is warming up) then we must pay our contribution to keep it all going forward with new investment.
Nothing is "free" exactly, well apart from going to your local lake and drinking the water from that........no thanks!!!
However, I do agree that the shareholders should be replaced by good old public investment, being back under our control!