Homes may face higher water bills if they have large gardens
Houses with large gardens or even outdoor swimming pools across England and Wales could be at risk of higher water prices, thanks to potential changes from to the utility industry. Water UK represents all sixteen water and sewage companies across both England and Wales, and revealed to the Financial Times its plans for improvement. It suggested that there is a potential for water metering to be made compulsory as well as a reform of charging methods. At the moment there are only compulsory meter restrictions in areas such as Cambridge which are deemed as “water-stressed” by the Environment Agency regulator. Whether on a meter or not, all customers currently pay a fixed standing charge, which is something Water UK have expressed they wish to abolish. That could mean metered customers are charged based on their water use and non-metered customers pay charges which are calculated based on their property’s “rateable value”. Alternatively, they can be charged according to the approximate annual rental value of their property.As it was established decades ago, the current system means that bills are not always calculated according to a person's water usage. However, Water UK plans to encourage the government to introduce new legislation allowing water companies to "block tarrifs". The organisation wants to tell the government-commissioned review of the sector, led by Sir Jon Cunliffe, former deputy governor of the Bank of England, to give water companies more power. This will set the unit price of water to be higher at raised consumption levels. As a result, the body said that some households will be paying more, including those with swimming pools or big gardens, and others much less. This is just one of the many drastic changes proposed by water companies in their 180 page document. The ideas have been submitted to the review, with the government commissioned amid public complaints over sewage pollution last year. Chief executive of Water UK, David Henderson said that the water companies have acknowledged that the current model "isn't delivering" for both customers and the industry. He further explained that he felt many features were “blunt and crude”. He added that he thinks ministers should introduce a consumer ombudsman, in order to help protect customers. This would also include with powers to enforce judgments once completing a company’s complaints process, as which have been exhausted in rail, communications and energy sectors. Henderson said there are “layers and layers of complexity, such that only a handful of people in the companies or even Ofwat understand them." He said: "It should be possible for anyone who can read and write to understand the system." Ofwat said: “We are already working with the industry, investors, consumer and environmental groups to drive changes to deliver a sustainable water sector”. While The Department for Environment, Food and Rural Affairs said it was “committed to taking decisive action to fix the water industry” and would “carefully consider the commission’s conclusions”.
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