(Reuters) – Britains water industry regulator on Thursday informed water companies that there was a big gap between their proposed retail and wholesale costs to run their businesses between 2020 and 2025 and that of its own.
The Water Services Regulation Authority (Ofwat) said Anglian Water, Thames Water and Yorkshire Water are asking for significantly more money than they currently spend for wholesale water and wastewater services. It also said SES Water was seeking more money for providing retail services.
However, Anglian Water said its cost plan was developed after talking to customers.
“As the company serving the driest and one of the fastest growing parts of the country, were confident our plan is the right one to ensure a sustainable future for our region,” the company said in an email.
Thames Water and Yorkshire Water did not immediately respond to requests for comment. SES Water could not be reached.
Ofwats move comes at a time when British utilities face the opposition Labour Partys renationalisation plan, prompting infrastructure owners to warn of damage to investment and high taxpayer costs.
A re-nationalisation could raise customer bills and lower investment, Britains listed utilities Severn Trent
Labour says that water bills have risen 40% in real terms since privatisation in 1989, while water companies receive more in tax credits than they pay in tax while paying out large dividends to shareholders.
“We are disappointed that revised proposals from Anglian Water, SES Water, Thames Water, and Yorkshire Water have not yet risen to the challenge we have set them,” Ofwat Senior Director David Black said.
British water utilities have faced a series of fines and a summer marked by supply shortages Read More – Source
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