In a joint letter to water and wastewater company CEOs, , Chief Executive of Ofwat and
Emma Clancy, Chief Executive of CCW, have asked for more support
to be given to customers.
The letter acknowledges that while water bills have been rising
below inflation in recent years, many customers already feel
their water bill is unaffordable. This will be further
exacerbated as higher inflation increases the cost of living next
year. In response, Ofwat and CCW are asking companies to:
- show that they understand the needs of their customers and
respond accordingly.
- ensure that more customers are benefiting from social
tariffs.
- consider how they can mitigate any significant inflationary
increases in customers' bills for 2023-24.
and Emma Clancy have also
requested companies to set out, by 8 December, their plans for
supporting customers through cost of living pressures. Both CCW
and Ofwat will engage in discussions with the companies and
report back on the plans, so the scale of companies' ambition is
clear to customers.
, Ofwat Chief Executive,
said:
"During Covid-19 we saw companies step up and support customers
through an incredibly challenging time. That intervention shows
that where there's a will, there's a way, so I'm asking companies
to find the will to go above and beyond once again. It is now for
companies to demonstrate that they can find ways to help
customers through this affordability crisis while not
compromising on their performance. I look forward to engaging
with them further on their plans."
Emma Clancy, Chief Executive of the Consumer Council for Water
(CCW), said:
“Struggling households need immediate relief and the long-term
security of knowing they can afford something as essential as
water. Companies need to take action now, while continuing to
support our calls for a new water affordability scheme that
protects customers that cannot afford the growing investment
pressures on the sector. We should not have to choose between
water poverty and progress.”
The letter follows a consultation from Ofwat earlier this year
calling for trials to help
with the cost of living.
ENDS
Notes to Editors
- The full letter is available here.
- According to CCW’s annual Water Matters survey as many as 1
in 5 of some of the most vulnerable households – including people
with disabilities, as well as unemployed people - feel their
water bill is unaffordable.
- Water companies are allowed to increase bills by inflation,
using CPIH (the Consumer Prices Index including owner occupiers’
housing costs). Water bills have always been linked to inflation,
but water companies do not have to increase their bills by
inflation.
- CCW’s recommendation for a new water affordability scheme to
end the current postcode lottery of existing financial support
emerged from its independent review of
water affordability.
