ELECTRICITY prices look set to tumble next year for East Lancashire householders, it was announced today.

The news comes on the back of proposals to cut water bills and major gas price cuts for local residents.

Plans announced by the electricity industry's watchdog today would see domestic bills in East Lancashire fall by as much as eight per cent next year.

That would mean between £16 and £20 being knocked off the average annual bill of around £250 in the North West.

The Office of Gas & Electricity Markets wants to see a reduction in prices charged for electricity distribution - which makes up a third of bills - of up to 30 per cent next year and a further annual reduction of three per cent below the rate of inflation until 2004.

Norweb today described the proposed cuts as "extremely demanding". "We will be carefully reviewing the details of the proposed price reductions before we make our full response."

The watchdog also announced more incentives on regional electricity companies to improve supplies to customers and to promote energy efficiency.

Further cuts in electricity prices could also be on the way following plans to reduce the wholesale price of electricity which makes up half the average domestic bill.

"I regard these proposals as tough, fair and realistic," said Callum McCarthy, director general of electricity supply.

"The additional measures on quality of supply will mean that customers should see further improvements in quality of service over and above those which they have seen over the last five years."

The proposals to cut electricity prices come just weeks after the water industry regulator proposed a 14 per cent cut in water prices over the next five years which would bring down customers' bills by an average of £40.

The opening up of the domestic gas market in the North West is also bringing savings of up to a third off bills.

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