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Q14. Who regulates how much water companies charge their customers?

The Water Industry is regulated by a government body called Ofwat (The Office of Water Services). Every five years Ofwat undertakes a Periodic Review of the entire industry by analysing submissions from all water companies detailing their business plans for the next five years. This review results in Ofwat setting parameters for water companies charges.

When setting prices Ofwat take account of:

Our need to develop and upgrade the water treatment processes, past and present, in line with rapidly developing technology.
The electricity bill for the power to pump the water to you.
The constant maintenance and development of the 14,500 kilometres of pipes that bring the water to you.
The costs of the manpower to provide you with a reliable and high quality water supply, all the time.
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