Ofwat blamed for high water bills by committee of MPs
13 January 2016
From the section Business
Millions of households in England and Wales are paying too much for their water supply because of poor oversight by Ofwat, says a committee of MPs.
A report from the Public Accounts Committee (PAC) said the regulator consistently overestimated water companies’ costs.
It said many householders would be “appalled” to learn their water bills could have been smaller.
Ofwat said it would “carefully consider” the PAC’s report.
Household water bills averaged just under £400 per year last year.
The committee of MPs said Ofwat regularly overestimated companies’ financing and tax costs when setting price caps.
The PAC said this meant the companies had made windfall gains of at least £1.2bn between them.
It is asking Ofwat to review the way it assesses companies’ cost of debt and tax and report back on how it intends to improve.
Source:: BBC UK