Water companies are expected to come under fire this week when they report annual profits of nearly £2 billion after imposing above-inflation rises in water bills.
Figures to be published this week by the leading water and sewerage companies will show that all achieved healthy increases in profits.
It will renew accusations that Ofwat has allowed firms to put shareholders’ interests ahead of the needs of customers. The water industry regulator announced in 2005 that the companies could increase prices by more than the rate of inflation on condition that they undertook large-scale investment, such as mending leaking pipes.
However, customer complaints are running at all-time highs, while leakage rates are not improving substantially.
Water companies to post £2bn profits