Water settlement fails to stop investment row in the north-west

Water companies will be able to increase charges to customers by an average of 4.2% per year above inflation over the next five years, the industry's financial regulator Ofwat has announced. The City interpreted the settlement as favourable to water companies. But the Environment Agency says that it intends to require United Utilities to complete additional schemes - for which funding has not been allocated - to meet EU standards.

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