31/10/11
Defra is consulting on guidance for social tariffs. This is good news, as for some time water companies have wanted to do more to help customers who need assistance.
Water and sewerage are essential services, so it is crucial to ensure that they are also affordable to all. Water companies are very conscious that some customers find their water and sewerage bills, along with other essential outgoings, difficult to afford.
The draft guidance confirms that companies may use cross-subsidies to reduce charges for individuals who would have difficulty paying in full. This will help not just these individuals, but all customers, as it should reduce the growing burden of customer debt.
While there is still some way to go, we are hopeful that final guidance will be in place in time for companies to be able to introduce social tariffs in April 2013.
We encourage all stakeholders to take a pragmatic approach, so that companies will at last be able to provide greater assistance to those in need.
Draft Guidance on Company Social Tariffs 2011
Defra consultation