Water bills to soar over the next two decades

One of the UK’s biggest water suppliers, Severn Trent, has said that water bills are likely to soar over the next two decades. The water supplier predicts that over the next twenty years the cost of water bills will soar around 27 percent above inflation.

The supplier has put the increase down to rising operating costs and EU regulations, both of which it claims will cost the industry billions of pounds. The water industry was privatised in 1989, and since that time has made huge profits from increasing bills. However, despite the price increases water companies are said to have failed to carry out repairs and offered a poor level of customer service.

Severn Trent said that rules that have now been brought in by regulators will results in billions of pounds having to be spent over the coming years, and these operating costs are going to prove hard to handle by the water suppliers. The company said that the rising costs that would be incurred by the water industry would have to be passed on to customers, who would see their water bills rocket as a result.

An official from Severn Trent stated: ‘It is not clear such a continued high level of investment is sustainable in terms of whether it can be financed, whether customers are willing to pay for it and the detrimental impact on carbon emissions.’

The water regulator Ofwat has also ordered water suppliers to place a cap on bills over the next five year, with Severn Trent being told to cut its bills by 4 percent, which will also hit the supplier hard. The rising cost of borrowing, which is a problem for all businesses, is also going to play a part in the higher costs that customers will face.

Tags: year, bills, costs, water, business, Severn Trent, water bills

20 Extreme Ways of Saving Money

Everyone wants to save money these days with money getting tighter all the time. Costs are rising and more and more people are finding themselves out of a job. It is little wonder that a money saving craze is sweeping across Britain. Some are taking radical steps to curb their spending. Read more

Tags: water, money saving ideas, cheap price, return home, use, save money, money saving tips, neighbourhood

Tighten your belts as household costs rise, says expert

Consumers are being told to be careful with their money and ‘tighten their belts’ because of the rising costs of many essential household items and bills.

Money education charity Credit Action has said people have grown accustomed to relatively low food and petrol prices but they will now have to adjust their budgets as these costs are increasing.

According to Capital Economics, food inflation is expected to remain at its current rate of six per cent for the next few months, while water and council tax bills are set to rise.

Gas bills are predicted to increase by around ten per cent and electricity by eight per cent in the second half of the year.

“For most families and people trying to manage their money and trying to budget carefully, that’s going to become much harder because there’s going to be far more cost associated with just the basic day to day living expenses,” said Chris Tapp, director of Credit Action.

Tags: water, consumers, belts, tax, rise, charity, Tighten

‘Homeowners protected from acts of god’

Building and contents insurance can help protect homeowners from the effects of climate exchange, according to the head of risk and underwriting at esure home insurance.

Mike Pickard states that the recent earthquake and increasingly frequent extreme weather conditions can see homeowners “rely” on their home or buildings insurance policy.

The head of risk and underwriting also states that measures can also be taken to help protect homes in the event of severe weather, such as flooding.

“There is no quick fix for flood damaged properties and the destructive power of water can turn lives upside down and damage personal belongings beyond repair”, he explains. Taking precautions and being prepared for the unexpected, whenever it should strike, is crucial.”

Research released by esure also revealed today that nine in every ten adults would not by a property if it had previously been flooded.

Following the earthquake in February, esure said that “a bout of extreme weather can strike at any time and in any street across the UK with devastating effects”.

Tags: flood, Financial economics, Esure, insurance policy, water, head of risk, god, United States

ABI issues warning as floods worsen

The Association of British Insurers (ABI) said yesterday that the floods in Southern and Western England, still ongoing, could hit the industry for “hundreds of millions of pounds” in claims.

With flood levels at 60-year highs in places, and with waters still rising, the ABI made its sombre announcement based on calculations that the average business would claim £100,000, and the average home £15,000 to £30,000.

Last month’s catastrophic floods in the Midlands already carry an estimated £2 billion insurance bill, according to the association.

Gordon Brown, visiting Gloucestershire – the worst-affected area by the floods – today, told reporters that “what we saw here was a month’s rainfall in some places in an hour, something that was quite unprecedented, and put enormous pressure on water and the emergency services”.

The Financial Times estimates the average insurance payout for storm damage in a year as between £400 million and £800 million.

Tags: The Financial Times, Southern, insurance bill, something, economics, Gloucestershire, water, United Kingdom

Insurance claims expected to flood due to flooding

The recent wet weather in Britain has devastated many homeowners all around the country, causing millions of pounds worth of damage collectively and causing untold stress and inconvenience.

According to officials the level of insurance claims is set to soar as homeowners assess the level of damage that the flooding has caused. This June has been reported as the wettest on record, and many areas throughout the country have suffered huge levels of damage.

A spokesman from the Association of British Insurers: ‘These events highlight just how important insurance protection is. If you have been affected by flooding, contact your insurance company. Their priority is to deal with all claims as quickly as possible.’

The Association of British Insurers has called upon the government to increase the funding for its defenses against flooding.

In the meantime, many of those without insurance cover or with inadequate levels of cover will be suffering the financial costs of the flooding, as they will have to foot the bill for the damages caused by the weather themselves, which could costs thousands upon thousands of pounds.

Even those with insurance cover have to now go through the laborious task of assessing the damage and making a claim with their insurer, which could take time to sort out given the number of claims that are likely to be flooding in.

More unpredictable weather is expected over the next few weeks, and this means that the number of claims being made could rise, which could mean further costs to insurance companies and a higher level of claims from customers. 

Tom Smith
10th July 2007

Tags: Insurance, damage, cover, cost, claim, weather

Home disasters for returning holidaymakers

Over one million Brits return from holiday each year to find that there home is a disaster area.

Research by Halifax Home Insurance shows that we arrive home to a combined total of £2.3 billion worth of damage and, without insurance, we could be counting the cost for years to come.

The most common problems are criminal damage, faulty utilities and storm damage. According to Halifax, a quarter of us are burgled while on holiday.

Water damage is another costly problem that affects many, with 1.7 million holidaymakers having to pay a combined bill of £960 million to repair damage done by burst pipes and the like.

“Home disasters can be extremely distressing at the best of times, so returning to one after a relaxing holiday would certainly bring you back down to earth with a bump, so having adequate home insurance cover to protect your property – whether it’s occupied or not – is absolutely critical,” said Vicky Emmott from Halifax.

“As well as making sure they are insured there are lots of other practical things that holidaymakers can do to protect their properties whilst they’re away.

“For example, ensuring that the heating comes on during the winter can prevent pipes from bursting, and cancelling regular deliveries like milk or newspapers make it less obvious to a thief that your property is vacant,” she added.

Children left alone on the house are also a common menace for holidaying Brits, with almost one million saying that they had returned to find their home damage by the kids.

Tags: water, halifax, adequate home insurance cover, milk, Financial economics, Vicky Emmott, insurance policy

Drivers warned about danger of frosting

Car owners are being warned against the dangers of frosting, which leads to a large number of car thefts each year.

As temperatures across the UK plummet, Sainsbury’s Car Insurance says drivers should be aware that thieves are on the look out for frosting victims.

Frosting involves the theft of cars which are left unattended, with the engine running in order to warm it up.

Sainsbury’s says that around 120,000 households have been the victim of the crime between 2000 and 2005.

“Many thieves are opportunistic and will look to steal your car if you leave it running unattended,” said Richard Clark from Sainsbury’s Car Insurance.

“We are concerned that the predicted extreme cold weather will result in more people taking this risk and becoming victims of frosting.”

The firm is also issuing advice to drivers which they hope will help to avoid accidents during the cold weather.

Motorists are advised to get their car serviced, monitor oil, water and brake fluid levels regularly and check tyre pressure and condition.

In addition, drivers are being urged to ensure that they have antifreeze with them in the car at all times and that headlights are regularly cleaned.

Tags: water, temperatures, frosting."The firm, households, oil water, check, Sainsbury's Car Insurance."We, frosting