Water bills look set to rise by 13% - less than half the size of the increase demanded by water companies. This was the 'good news' yesterday as Ofwat announced it's consultation document draft price limits for the water and sewerage companies in England and Wales for the five years from 1 April 2005.

If Ofwat's numbers are confirmed in December, water customers will see average bills rise by £33, from £249 now to £282 (not including inflation) over the five years from April 2005.

Devil in the detail

But as usual the devil is in the detail. It may be half of what the water companies asked for, and that is good news but this is only a consultation document and in any case, although the total average increase proposed over the period is 13%, half of the rise for most customers in England and Wales will come as soon as 2005-06.

The biggest rise will see customers of Wessex Water paying an extra 20% (£55) over five years on their current average bill, says the regulator, but this hides the fact that South West customers at an average bill of £357 are already paying far more than Wessex customers will be after the 20% increase is fully applied in five years time (£332).

Anglian and Welsh Water customers are also already paying more than the average bill will be after all the increases are applied.

Unfinished business

WaterVoice Council Chairman Maurice Terry said: "Ofwat has risen to the challenge set by WaterVoice, which asked in June for proposed bill rises to be cut by at least a third. However, there is unfinished business."

"As always, the devil is in the detail. We will examine Ofwat's decisions very closely to check the implications for customer service. In particular, we will examine the effects on customers' priorities: a secure water supply, maintaining drinking water quality and the collection and treatment of sewage, including the elimination of sewer flooding of homes."

But the Government has still to finish the job of easing affordability problems for low and fixed income customers, said WaterVoice. "Even with water bills at their current levels, there is a serious problem of customer debt. The Government must take responsibility for the consequences of these further increases – namely helping those people who will not be able to afford next year's water and sewerage bill," Mr Terry added.

Water companies must present their reactions to the proposals by September 15. Ofwat will make its final determination in December, and the price regime takes effect from April 2005