09:59AM, Tuesday 03 December 2013
Householders have been hit by further utilities price rises after Thames Water announced plans to increase its average bill by 11 per cent by 2020.
The water company said the planned rise, which excludes inflation, was needed to pay for a £2.8bn investment in the Thames Tideway Tunnel in London.
If approved by industry regulator Ofwat, it would involve an increase to the average bill of £8 above inflation for each of the five years from 2015.
It would mean the average bill, priced at £358 a year in 2013, would rise to £398 plus inflation in 2020.
£5.1bn of work to existing infrastructure is also planned, but the company said prices would have increased below inflation over the five-year period if it were not for the added cost of the tunnel project.
Martin Baggs, chief executive of Thames Water, said London's infrastructure 'urgently needs upgrading which inevitably puts upward pressure on bills'.
South East Water's proposals will see the average bill decrease, dropping from £201 in 2013 to £199 between 2015-2020, before inflation.
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