Pub water bills to rise from 2010

Many licensees face big increases in water bills from 2010 under new plans.

Rises of up to 26% above inflation have been proposed for metered bills, with the steepest increases from firms supplying pubs in southern, south-west and north-west England. One supplier — South West Water — is proposing a 40% price hike for unmetered properties.

However, many licensees in Wales, central and eastern England face less steep increases.

The planned increases, being phased in between 2010 and 2015, bring more gloom to licensees, who already face rapid price inflation in other areas such as gas, electricity, food and drink.

The proposals were an-nounced this week in draft business plans that suppliers must submit to the regulator Ofwat every five years. Ofwat will decide whether to sanction the increases in November 2009.

Suppliers pointed to a number of reasons for the increases, including higher energy costs, work needed to meet the needs of a growing population, and action to protect against natural disasters such as flooding.

BII chief executive John McNamara said: "We deplore these proposed price increases — we're being hit from all sides.

"We understand Ofwat is receptive to external lobbying and will be writing to them to make a plea on behalf of our members and all of the thousands of smaller operators in the trade, for small businesses to be given some relief against these price hikes.

"Perhaps a sliding scale of increases, based on usage or square footage, could be introduced to stop small businesses being hit so hard."

Marston's Inns & Taverns managing director Derek Andrew said: "This is an unsurprising addition to the relentless cost increases that the industry has to bare. Eventually the consumer will have to bare the brunt."