Abacus Daily Debt News

Those in debt ‘could benefit from new proposals’

New plans by regulatory body Ofwat could enable people that are struggling financially to manage their debt more easily, one expert has suggested.

The new guidelines could see household bills for water and wastewater stay largely stable until 2015, with the institution able to set the prices utilities can charge.

Deputy chief executive at campaigning organisation Consumer Focus Philip Cullum stated it was important that people recognise the need to preserve water, but not at the expense of essential requirements.

He said: "Lower prices will be good news for vulnerable customers struggling to pay the bills and who may be limiting the amount of water they use."

According to the draft proposals, Ofwat will attempt to reduce the average family water and sewerage charges by four per cent by 2015, before inflation is considered.

A final decision on what organisations can charge for services will made in November and the new billing arrangements will be introduced in April next year.

By Francis Finch