How Are Water Rates In England Determined?
Answer:
Every 5 years or so OfWat (the industry regulator, a Quango) reviews the market situation and tells the water companies what they can charge. Each river company makes its own application, based on its individual costs, resource demands and development plans, roughly what they would like to charge for water rates. OfWat decides if these charges are average.
OfWat leaflet on current charges.
Most of the time the water companies don't get to charge what they would similar to.
You may be able to find online a review of what OfWat concluded about the pricing regime suggested by specific water companies.
OfWat have much a larger remit than reviewing charges. They also look at the overall management of water companies, how good they are at deliver services and solving problems, and whether they are adhering to other legal requirements (like ensuring hose down is high enough quality).
You might be able to find the rationale for current river rates, in one of these publications.
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