WATER watchdog Ofwat is calling on United Utilities to share efficiency savings after news of its increased profits. The North West Water owners have announced higher profits and an increased dividend to shareholders. Ofwat say this comes just weeks after customers found out that the £10 rebate off their bills in 1997 had been reduced to £6.50.

Maurice Terry, North-west customer service committee chairman, said: "We remain extremely disappointed that NWW reduced its customer rebate this year.

"With the levels of profits and dividends announced, we believe that the £10 rebate could have been maintained without affecting the group's financial position."

In calling for a bigger share of the profits, Mr Terry added: "While we are pleased to see that United Utilities is a successful company, there can be no argument at all that it cannot afford to give its customers impeccable standards of supply and service."

The watchdogs believe the benefits of privatisation have so far been weighted too much in favour of the shareholder.

It is calling for a planned one-off price cut in the year 2000 and the resetting of price limits.

Customers are urged to write to Ofwat for an information pack on price reviews to: Ofwat North West CSC, Bridgewater House, Whitworth Street, Manchester M1 6LT.

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