Breaking finance and business news, tax information, jobs and more for finance directors and senior finance professionals.

He acted initially on the board of the listed parent companies Bristol Water Holdings plc and Bristol Water Group plc prior to the agreed takeover in 2006 by Sociedad General de Aguas de Barcelona S.A (Agbar).

Bristol Water supplies 300 million litres of water a day to Bristol and the surrounding area - about 2,400 square kilometres in total, with a population of over one million people. Bristol Water reported profits before tax of £18.9 million on a turnover of £86.3 million for the year ended 31 March 2007. This compared to £18.4 million profit before tax on an £81.9 million turnover in the previous year, a 72 per cent rise in returns. 

In 2004 the water regulator, Ofwat, set annual price limits for the period 2005-10. Bristol Water originally had price limits of 0.7 per cent over inflation for 2008-09 and minus 2.3 per cent in 2009-10, which would have led to an annual price increase below inflation.

However, Bristol Water has asked Ofwat to review its price limits for the next two years. When Ofwat set the price limits, they made assumptions about the level of revenue the company would receive over the 2005-10 period. The company says it has experienced a significant loss because more customers are opting for free water meters than Ofwat forecast in 2004, the level of unpaid annual bills by Bristol Water customers has led to a revenue shortfall, and water abstraction charges levied by the Environment Agency have been higher than forecast. Ofwat is expected to issue its decision by 14 December at the latest.

Charles Howeson, Chair of the Consumer Council for Water Western, said, “Any increase in prices is unwelcome, and a potential increase of £15 for the average householder spread over the next two years is a concern. However, at the same time the level of service provided by Bristol Water cannot be allowed to slip, and the company must also deliver the improvements to their infrastructure which they are committed to up to 2010."

Related links

• Bristol Water