Watchdog blamed for our high water bills
The water watchdog, OFWAT, have been blamed by MPs, for allowing water suppliers to hit everyone with bills that are too high. Collectively, they've made a £1.2bn windfall after making us pay more money than is necessary.
The Public Accounts Committee said that the watchdog have consistently overestimated companies' costs when they were setting rice limits. With customers' bills averaging out at £396 in 2015, it is not pleasant news to learn that, should OFWAT have done their job properly, bills would've been smaller.
Now, OFWAT are being urged to review the way they do things, and how they ask suppliers to set allowances for corporation tax, the cost of debts and developments, and issue public reports on how they are going to better their own performance.
PAC chairwoman Meg Hillier said: "OFWAT was set up to protect the interests of customers, most of whom have no choice over who supplies their water yet must pay bills typically running to hundreds of pounds."
"Many householders will therefore be appalled to learn these bills could have been smaller had OFWAT adopted a different approach to setting price limits for water companies."
"This approach must be reviewed as a priority. We are also calling for greater transparency over windfall gains made by water suppliers, and more effective action to see these gains passed on to customers."