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The press office handles all media enquiries on behalf of Cambridge Water.
Contact:
Annalise Lister
Communications Manager
Cambridge Water
90 Fulbourn Road
Cambridge
CB1 9JN
Telephone:
01223 403176 (during office hours)
Email:
annalise.lister@cambridge-water.co.uk
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Cambridge Water predicts tough times ahead
Cambridge Water is gearing itself up for a challenging five year period following feedback from Ofwat on its business plan.
In its draft determination announced today (July 23) Ofwat has stated the average household water bill should fall £11 over the next five years (before inflation).
While this may sound like good news for consumers, Stephen Kay, managing director of Cambridge Water has warned the reality of delivering this, while maintaining the same high levels of standards customers have come to expect, will be tough.
He added: “Our customers already benefit from the second lowest charges and the highest levels of customer service, despite the fact we operate in one of the driest areas of the country.
“In our draft business plan we envisaged we would be able to increase our customers’ bills by an average of £8 over the five year period to pay for essential works. The reality is that bills will decrease by £11. This leaves us with a deficit of £19 for each of our customers which is equivalent to £2million by the end of the five year period.”
He said that the regulator Ofwat had determined that savings, equivalent to £10 per customer, must come from making greater operating efficiencies and a further £5 per customer should be saved from lower returns to lenders and investors.
He added: “Throughout our 156-year history, our aim has always been to operate in the best interest of our customers. Given the current economic climate and the desire to ensure bills remain affordable, we had already significantly reduced the amount we had planned to spend on infrastructure over the next five years from £57.3 million to £36.8millon, and deferred many projects to 2015 and beyond.
“While we are pleased the regulator has accepted the company’s need to invest in news assets to secure the quality of the water supply, today’s announcement will mean we have to review our business plan once again in an attempt to make further efficiency savings.
“A significant challenge for us will be looking at how we can continue to provide our customers with the highest levels of service while balancing the needs of our investors and the environment.”
Cambridge Water has between now and October to meet with Ofwat and discuss its draft determination. Ofwat will take account of its views and any new information before setting final determinations in November 2009.
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