Ofwat, our regulator, sets our price limits for five years at a time. Its assessment is based on what we need to spend to maintain our assets and meet our mandatory investment obligations during that period. Price limits have been set for the period 2010-15.

The money from bills will help pay for our £1.8 billion programme of service and infrastructure improvements during the next five years.

This customer-focused investment is the equivalent of spending almost £1,000 for every property in the Southern Water region, across Kent, Sussex, Hampshire and the Isle of Wight.

The improvements will:  

• Safeguard water supplies
• Improve water quality
• Protect the environment
• Reduce leakage
• Help prevent flooding

Under a five year programme lasting until 2015, we are installing water meters for the majority of our customers to help secure water resources.

Once the programme is completed, 92 per cent of customers will pay for the actual amount of water they use and have control over their bills.

Click on the questions below to reveal the answers:

IF YOUR WATER SUPPLY IS NOT METERED

1. What is a rateable value? (RV)      
   • Before 1 April 1990, the Inland Revenue set a rateable value for each property, and this was used by local authorities to calculate general rates. Although they haven't changed since this date, the law allows us to use rateable values to calculate water and wastewater charges where the property doesn't have a meter.
2. What are rateable value charges? (Pence in the £) 
   • For a property without a water meter, water and wastewater charges are calculated by multiplying the property's rateable value by the rateable value charge. For each service provided, a standing charge is also payable.
3. Is the rateable value charge the same as Council Tax? 
   • No. Rateable values were set to represent  the annual rental value of property, whereas council tax bands were set to represent the market value of property. These are two separate systems, so a change to your council tax band will not affect rateable value.
4. How do we calculate a rateable value (RV) bill? 
   • RV x water pence in £ =Water supply charge
     
     RV x wastewater pence in £ = Wastewater supply charge
     
     Plus standing charges, surface water drainage (if applicable) and highway drainage.
5. What are standing charges? (unmetered supply)      
   • There are certain costs that we incur regardless of how much customers use our services. These include, for example, the cost of sending bills, collecting payments and dealing with enquiries. The standing charges that we make cover these costs.
6. What is an assessed charge? 
   • A fixed assessed charge is where a meter has been requested but it was not possible to install one. If you receive your water supply from us, this charge is based on the number of bedrooms in your house. If you receive your water supply from one of the independent water companies in our area, the assessed charge is set using the same criteria as your water company. Customers who live alone may be able to benefit from our single occupancy discount providing they can confirm that they receive single person discount on their Council Tax charges.
7. What is a fixed licence fee charge? 
   • The annual wastewater charge is applied to new or newly converted properties in the Portsmouth Water supply area where there is no meter and the property does not have a rateable value.

IF YOUR WATER SUPPLY IS METERED

1. How does metering work? 
   • With a meter you are charged for the amount of water you use.
     
     The water is measured in cubic metres. One cubic metre = 1000 litres (220 gallons). You are also charged for the water returned to the sewerage system, which is treated and recycled to the environment.
     
     However, some water is used in the garden or evaporates, so we work out bills on the basis that only a percentage of water supplied goes into the sewers.
     
     Meters are normally read twice a year. However, where we have been unable to obtain a reading, an estimated account will be issued. We will not normally issue more than one estimated bill in a year.
2. What are standing charges (metered supply)?      
   • There are certain costs that we incur regardless of how much customers use our services. These include for example, the cost of sending bills, collecting payments and answering enquiries. The standing charges that we make cover these costs.
3. Would I pay less if I were on a meter?      
   •  It entirely depends on how much water you use. Under our metering programme we are installing meters for the majority of customers. 
     
     As households move to metered charges, about half will see their bills go down and half will see an increase in their water bills. This is because at the moment water bills are based on the rateable value of a property, whereas on a meter they are based on the amount of water people use.
     
     Water meters are the fairest way of charging for water as they link cost to consumption. They also allow customers to monitor how much water they use and manage how much they spend. 
     
     You can visit the ‘How much will it cost’ section of our metering website for an indication of how much you should expect to pay with a water meter.

OTHER QUESTIONS

1. Do I receive a discount if I pay by Direct Debit?      
   • No, we do not offer discounts for paying by Direct Debit.
2. Will I receive confirmation if I set up an instalment plan? 
   • Yes, you will receive a statement within 10 working days of setting up an instalment plan.
3. Where can I pay using a payment card? 
   • You can pay using your payment card at Post Offices or any shop displaying a Pay-Point sign.
4. I have received a bill addressed to "The Occupier". So do I need to register my details with Southern Water? 
   • Yes - if you do not register your details with us, we may assume that the property is empty which may result in the non continuity of your water service. You can set up an account with our online form.