Authorities urged to slash proposed water bill increases

Government and Ofwat today faced calls to 'turn off the tap' and cut, by at least a third, proposed average water bill rises of £70, or 29.2%, over the next five years.

In open letters to Elliot Morley, Minister for the Environment and Agri-Environment, Carwyn Jones, Welsh Minister for Environment Planning and Countryside, and Philip Fletcher, Director General of Water Services, WaterVoice Chairman Maurice Terry said he was "dismayed" that the strategic framework within which the water companies have put together their final business plans had resulted in company proposals for such large increases in water bills.

It makes matters worse for customers that most companies are planning to hit customers with one-off rises next April, which average around half the increase for the full five-year period, the letter added.

WaterVoice also pressed the government to listen to the recommendations of two House of Commons Select Committees (Select Committee on Environment Food and Rural Affairs, and the Environmental Audit Committee) which recently held and published inquiries on water pricing and the 2004 price review.

Mr Terry said: "It looks like customers are in for a soaking from next April. As a matter of urgency, the government must consider introducing better financial support for customers on low and fixed incomes, who will not be able to absorb the planned rises. Having sanctioned such a large environment programme, to be funded by customers, it is up to government to take policy responsibility for dealing with the social consequences."

The WaterVoice letter contained a 'shopping list' of measures, including demands for: a smoother price profile over the five-year period by Ofwat; and for government to help poorer households with water and sewerage charges through the tax credits and benefits system.

(gmcg)