Photo source: Ofwat
Water is something that is free but you still have to pay for it and its something everybody needs every day but no-one can chose where or who to get it from. That’s the view of George Day Ofwat Director of future charging and it is the dilemma facing Ofwat as it develops its strategy for future water charging.
The facts are stark. For over 20% of Southern Water’s customers the water bill takes over 3% of their household income. Yet Southern Water is about to implement its Universal Metering Programme that will see water bills go up by over £100 for 50% of its customers. How will this help affordability, especially in these tough economic times? This is likely to be very difficult to sell to customers. The water industry needs to think like a business and be very clear on what benefit customers will see for this increase in their bills.
With the Universal metering programme there is a real risk that customers will be cynical about the motivation for metering and whether it really is in their best interest. What clear benefits will customers see for the extra £100? Southern Water will need to do an exceptional job in selling the benefits if it is not to create a customer backlash and problems for all in the industry.
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