Biggest Public Water Company In U.K. Plans Significant Rate Cut

The biggest publicly traded water utility in the U.K. recently revealed plans to offer customers a significant rate cut.

United Utilities proposed "to cut customer bills as much as 4.1 percent starting next year," Bloomberg reported.  "Average water bills in the region are a little over £400 a year," The Times reported.

The proposal was part of a business plan the utility submitted to the regulator Ofwat in October.

The proposal attempts to resolve questions about what the utility can charge over the next five years beginning in 2015.

The company said, per the Daily Mail: "In providing our response to [a government determination], we have reflected our aim to continue to provide the best service to customers, at the lowest sustainable cost and in a responsible manner while delivering value for shareholders.

Under the proposal, United Utilities "scaled back its future infrastructure spending plans," according to Alliance News. The company said it would cut spending "by 370 million pounds ($591 million) to a total of 5.52 billion pounds for the period," Bloomberg reported."

Ofwat regulates how much water and sewer companies in England and Wales may charge customers. The regulator has been going back and forth with various companies this year on the question of rates.

United Utilities "was one of three companies which were given further time to review their plans due to a 'very material gap' between their expenditure projections and Ofwat's view in its draft determination on them," WirralGlobal reported.