Northumbrian water to limit price hikes

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Northumbrian Water has said that it plans not to charge consumers more over the year ahead - despite energy regulator Ofwat giving the go-ahead to the hikes.

The water and sewerage firm said that it had foregone the price cuts after it had been able to secure funding on more attractive terms. The cuts are equivalent to £10 per year for the period between April 2007 and March 2010.

The company has just released its profits for the financial year, revealing that income rose by 13.4 per cent to £147.8 million to March 31st. Revenues were up by seven per cent to £633.5 million.

Northumbrian additionally announced that it had met its leakage targets for the eighth consecutive year. It has also managed to deliver its water supply without restrictions - despite the fact that drought affected most supplies in the south-east of England during 2006.

It currently supplies 1.7 million people in the Essex and Suffolk with water - and 2.6 million people in the north with water and sewerage.

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