29/01/08
Last month Eaga and WRC reported on the Defra South West Pilot Scheme on Water Affordability, set out in the 2004 Review. There are some positive results from the scheme, but none really unexpected.
Benefit checks can increase income (if the customer does complete the form) and installing meters and water efficiency devices can reduce bills. Looking behind the headlines, the numbers paint a more realistic figure. Of 473 households at the end of the trial, 68 (13%) had switched to a meter and most had a lower bill.
The trial has been most successful in aiding customers who 1) are full payers paying more than 3% of disposable income for water bills, 2) are initially on an unmeasured tariff and (crucially) 3) have relatively high disposable incomes.
It’s clear then that this isn’t the panacea for all customers. It is, however, another piece of the jigsaw water companies can use to address the wider issue of water affordability.
The ongoing WaterCare trial from South West Water will provide additional valuable information on the longer-term benefits and costs of such a scheme.
Contact: Phill Mills
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