28/02/08
Future Water proposes a wide review of water charging to look at the issues of efficiency and fairness. While the analysis of efficiency issues associated with metering is most helpful, the government approach flounders when it comes to affordability.
Metering, when associated with the right tariffs, has the potential to save significant amounts of money, Defra says, and it can be a fair way of charging because customers pay for the services they receive.
Defra appears to believe that innovative tariffs can be a magic bullet that both promotes water efficiency and shields a sizeable proportion of customers from charges that reflect the amount of water they use. This is a fundamental inconsistency which weakens the strategy and casts doubt on its success.
If, as Defra says, all customers have the income to pay for the water services they need – because the benefits system is sufficient – water companies need the legal and administrative means to recover money owed to them.
Water UK will support the government in its review of charging and help it to: clarify conflicting objectives and determine priorities; develop tariffs that maximise the potential of water resources and metering investment; and achieve the objective of a sustainable, customer-focused industry.
Contact: Jeanne Golay
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