Competition pushes water bills down

HOMES in France are beginning to benefit from a significant drop in the cost of water, as competition in the market is forcing prices down.

New figures from the Fédération Professionnelle de l'Eau (FPE) show an average price decrease of between 5% and 9% last year, depending on the region.

Toulouse has recently negotiated a 12.5% cut with Veolia, the private utilities giant that no longer has a monopoly on the French supply system.

According to Le Monde, Lyon has seen prices drop by 16% in a year and Reims 10%. Many small communes are joining forces to improve their bargaining power.

More price drops are expected in the coming years as some of the biggest water supply contracts come up for renewal - Marseille and Brest in 2012, followed by Lille in 2015.

German group Gelsenwasser, which already supplies the water to homes in Nantes, has said it is interested in expanding to other parts of France.

According to the FPE research, the average cost of a cubic metre of water supplied to a household was €3.09 last year.

Photo:Meemal