Water company makes case for higher bill increases

A water company's boss said it had a strong case for higher bill increases over the coming years.

In December the industry regulator said that bills for Wessex Water would increase by 21% over a five year period - a decision that will raise the average household bill by £67 and that Wessex and other water companies are now appealing.

Speaking to MPs - the company's CEO Ruth Jefferson - said that major investment was needed in the water network and claimed that the proposed increases would not cover the costs:

"We need to make improvements at 123 sites and we now feel that we can't make all of those investments," she said.

Ms Jefferson said she would be asking the Competition and Markets Authority (CMA) to look at Ofwat's decision.

Wessex Water and other water companies have come under pressure over pollution and a lack of investment in an aging network in recent years and Ms Jefferson said that improvement works would still take place regardless of the CMA's ruling.

"We have a long term owner who will do everything necessary to make sure that we can deliver what we said we're going to do over the next five year period," she said.

Ms Jefferson also defended an advert by the company that the Advertising Standards Authority (ASA) banned last year.

The ASA said the advert - which promoted the work and investment by Wessex Water in tackling storm overflows - neglected to include information about the company's environmental impact.

"The issue with the advert was around our environmental performance and the fact we were a two star company and at the time the advert aired we had not been confirmed as a four star company - that was the issue the ASA raised with us," she said.

She went on to say that the company's environmental performance had improved.

Wessex Water covers Dorset, Somerset, Bristol, Wiltshire and parts of Gloucestershire and Hampshire.