MPs criticise water company profits increase

6.01.00pm GMT Thu 29th Nov 2007

Cornwall's five Liberal Democrat MPs have reacted with concern at news of a sharp increase in profits for South West Water (SWW) despite the fact that customers in the region are still faced with the highest bills in the country.

SWW's latest report shows that in the first half of this financial year the company made a profit of £97 million, an increase of 15.2% on the same period last year, whilst customers with no alternative choice of supplier were faced with average bills of £480 for the year compared with an average of £275 in London.

Commenting on the figures Andrew George MP for the West Cornwall and Isles of Scilly constituency of St Ives and Vice-Chair of the All-Party Parliamentary Water Industry Group said: "The company operates in a uniquely protected environment. It can more or less predict its own profit in advance; a risk-free money extortion system which has its own regulator - OFWAT - to give it that added aura of acceptability. It really is time that the Government looked again at the system of regulation - one which puts our water rate payers at a massive disadvantage compared to the rest of the country."

Julia Goldsworthy MP for Falmouth and Camborne added: "Today's news will leave a nasty taste in the mouth of many South West Water customers who struggle to pay their bills. Bills have been going up more than inflation every year and there needs to be a commitment from South West Water and from the Government to address this issue."