The National Audit Office (NAO) said water companies in England and
Wales had benefited from tax cuts and cheaper finance costs over the
past five years.
However, customers' bills had not fallen because
Ofwat had not properly "balanced the risks" between water companies and
consumers, the NAO said.
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| water company |
Ofwat rejected criticism of its price control regime.
The NAO estimated
that between 2010 and 2015, water companies gained £410m from lower
corporation tax rates and a further £840m from lower than expected
interest payments.
Over the same period the companies absorbed
costs and provided water bill discounts worth up to £435m, leaving them
with a net gain of £800m.
