South West Water (SWW) has announced it’s freezing it’s standard tariffs and standing charges until April 2015 since posting an increase of 7.6% in profit before tax to £87.3 million.
The company’s profit was up due to “higher revenues, rigorous cost controls and efficiency delivery ahead of expectations”. It’s not taking up the 4% price increase that would have previously been allowed under it’s current regulatory agreement.
Although SWW currently has the highest bills in the country, it said it would keep it’s price rises below inflation until 2020.
Pennon Water who owns the company also saw it’s overall profit rise by 3.5% to £110.9 million.
Viridor who organises it’s waste management saw it’s profit before tax down by 28.8% to £15.3 million, which was expected.
Chris Loughlin, South West Water chief executive, said: “We’ve talked to thousands of customers and businesses to prepare the best investment plan we can and they have told us consistently they don’t want to see any erosion in services but are worried by rising household bills now and in the future.
“We can help all household and business customers now by not putting a penny on any of our standard water and sewerage tariffs and standing charges until April 2015.”
SWW is due to submit its business plan for the years 2015-2020 on Monday to Ofwat.
“We have re-examined every last detail of our business plan to squeeze out more savings while still delivering the improved services and infrastructure homes and businesses need.”