Water bills for households in England and Wales will fall yearly starting in 2020 by 15 to 25 pounds according to Ofwat. Rates have increased by 40% since privatisation in 1989. Costs of financing have decreased but water companies are allowed to charge for inflation so in 2020 consumers may not see a change in their bills according to Ofwat. Jeremy Corbin wants nationalisation of water companies. Ofwat is accused of overestimating costs in 2016. A watchdog group says this will result in bill instability.

Key Takeaways:

• While the local services provide great service they consistently charge more year to year
• This cap will hit their profits immediately and is designed that way.
• While 25 is possible, most houses will see in the 15 to 25 range for cuts on their bill.

“Since privatisation in 1989, water bills have risen above inflation by about 40%, leading to a debate about whether privatisation works for that industry.”

Read more: https://www.bbc.co.uk/news/business-42336197