FAQs - Our Charges

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 the company’s £1800 million programme of service and infrastructure improvements during the next five years.

This customer-focused investment, recently agreed with industry regulator Ofwat, 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
Cut pollution incidents

Over the next five years the company will also be installing nearly 500,000 meters to help drive water conservation, meaning that by 2015, 93 per cent of customers will pay for the actual amount of water they use and have control over their bills.

IF YOUR WATER SUPPLY IS NOT METERED

(Scroll down for metered and other questions)

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 wherethe property doesn't have a meter.

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 rateable value by the rateable value charge. For each service provided, a standing charge is also payable.

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 seperate systems, so a change to your council tax band will not affect rateable value.

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.

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 answering enquiries. The standing charges that we make cover these costs.

What is an assessed charge?

A fixed assessed charge is where a meter has been asked for but it was not possible to fit one. If you receive your water supply from Southern Water 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.

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

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.

What are standing charges (metered supply)?

Would I pay less if I were on a meter?

It entirely depends on how much water you use. Industry research has suggested that 70% of customers would see either a fall in bills, or no change. 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. Provided it is practical to achieve there is no cost for domestic customers to having a water meter fitted. Our online calculator can give you a rough indication of how much you should expect to pay with a water meter.