(Reuters) – England and Wales water regulator Ofwat said on Thursday final water bills for an average business customer across England who are on a dual metered tariff would increase by around 6.4%, before inflation, from April.
Ofwat said it would simplify the price caps applying to smaller business customers by moving from the existing model of price caps varying on a regional basis, to an England-wide national price cap.
The business retail price caps would be applied to smaller business customers – consuming less than 0.5 million litres of water per year, who have not engaged in the market, for instance, by switching retailers.
“Our price caps ensure the business retail market is fair for small businesses that don’t shop around as much as much as larger businesses do,” Ofwat Business Retail Market Director Georgina Mills said.
“We need to make sure that these caps are at the right level, so that efficient water retailers can cover the costs of supplying their customers and small businesses don’t pay more than they should.”
The regulator would transition the introduction of the new price caps over a two-year period, it said.
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Rashmi Aich)
