Review calls for £650m payment to South West Water
A ONE-OFF £650 million government payout should be considered in a move to bring rocketing water bills in Plymouth down.
The head of the review into water charging Anna Walker said it would be the ‘cleanest’ of three solutions her inquiry has proposed to tackle the ‘unique’ historic problems faced by hard-pressed South West Water customers.
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But she recognised that such a ‘corrective’ adjustment by the Government may be “particularly difficult” given the perilous state of the public finances.
Another ‘remedy’ put forward by the review to reduce the burden on householders, was through contributions by other water customers from across the whole of the country, although it acknowledged this would raise “fairness issues”.
The third option put forward is for a package of measures including the introduction of a seasonal tariff with a premium rate - up to four times the normal cost - levied on additional summer use, discounted bills for the poorest families, and steps to reduce water usage - and so cut bills - for vulnerable groups such as pensioners.
But help for low-income households could cost other South West customers up to an extra £14 a year, which the inquiry warns, could “perpetuate the sense of unfairness”.
The seasonal tariff element could also spark controversy in the tourist industry, similar to that seen against the so-called “bed tax”. It also assumes a constant year-round usage, and could raise practicality issues.
Ms Walker said: “One reason we were so concerned to identify the three (solutions) is we recognise a one off correction by government, which in a sense would be the cleanest solution, may be particularly difficult.”
The inquiry recommends that the industry regulator Ofwat is consulted if the Government wants to take forward any of the proposals.
Ms Walker said: “It’s up to the Government how it pursues the recommendations.”
But she added: “I know the Government is in no doubt about the concern in the South West over bills – absolutely none.”
And hopes have been raised that the specific proposals for the South West will be acted upon, with ministers committing to ask Ofwat to look into the options for dealing with high water bills, resulting from privatisation, and to advise the Government.
The problems faced by water customers in the region, is highlighted with an entire chapter dedicated in the report to the South West in the 239-page report, with its own specific proposals.
The inquiry team visited Plymouth twice to gather evidence during the course of the review.
It points out that South West Water bills are a significantly higher compared to than anywhere else in the country – an average £490 compared to £343.
And customers not on a meter are saddled with far larger bills of £723 on average, compared to £401, which are set to rise by nearly a third over the next five years.
A main cause of the high bills is that since privatisation, the water company had to spend a lot to bring the dilapidated sewerage infrastructure up to the same standard as everywhere else, but with comparatively fewer customers to pay for it.
Labour MP for Plymouth Sutton Linda Gilroy said: “Anna Walker has listened to my constituents and the findings of her report go a long way to helping us in our battle to get something done to help our constituents.”
Fellow Labour MP for Plymouth Devonport Alison Seabeck MP said: “At long last we have recognition that the botched Tory privatisation in 1989 had inbuilt flaws.
“As well as setting out solutions this report sets out some proposals which we now need to seek the support of government for. We will not leave any stone unturned in doing so.”
A spokesman for South West Water said: “We welcome the report's focus on the South West and its highlighting of how charges have been driven by the huge environmental investments we have had to carry out over the last two decades.
“There are many interesting recommendations in particular on future tariffs and how to best help those in most need but we will need to time to study and model the potential implications of these on all our customers and also how practical they might be in practice.”
Environment Minister Huw Irranca-Davies said: “I welcome the publication of Anna Walker’s excellent report. We will consider her recommendations carefully ahead of a full public consultation. Meanwhile in line with the specific recommendations for the South West water area, we will ask Ofwat to consider the options for dealing with the high water bills there which have resulted from the original privatisation, and to advise Ministers accordingly.”
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by KW, Plymouth
Wednesday, December 09 2009, 12:12AM
“Maybe the Tories did privatise the water companies back in the 1980s, but this pathetic excuse of a Labour Government has had 12 years to put things right. What has it done instead? Put the UK in so much debt it is unreal. We have a Prime Minister who has the charisma of a concrete wall.
On the subject of water bills why should the SW pay more than everyone else? It is so unfair.”
by David Mavin, Eggbuckland
Tuesday, December 08 2009, 9:38PM
“It may well have been the Tories that brought in the privatisation of water but lets not lay the blame totally at their doorstep, previous governments before the Tories of the 80s neglected the national infrastructure for which we are still paying for its improvement and this Labour government has had 12 years to address this problem (in the boom years) on behalf of all SWW customers and has done nothing.
All governments since privatisation have been quite happy taking the corporate tax revenue without doing the hard work of running the company, its a surprise we let them run a country.
If Anna Walker is suggesting a one off payment of £650 millions (giving our money to private industry to offset lost revenue) how much would it take to go the whole hog and re-nationalise the entire national water industry (part of this capital could come from the disbanding of the ineffective Ofwat)?”
by Dave, Torbay
Tuesday, December 08 2009, 4:13PM
“I have just read the relevant sections of this report and if the rest of the country had to pay an amount to bring the bills down in the South West, it would be the vast sum of £1.50 a year,per household. Not a lot, especially if you come to Devon and Cornwall on holiday, for nice,clean beaches.”
by Dave, East Midlands
Tuesday, December 08 2009, 3:48PM
“RE:"So let me see if I read this correctly. This person wants the governmen to use the money the we have contributed , through taxes ect, to reduce our extremely high water bills?"
WHAT I am saying is that it is TOTALLY unfair that the customers of SWW have to pay higher bills than anyone else! One of the reasons SWW say that bills are higher is because of the beaches. I am saying reduce the bills and charge those who use the beaches. Why should I be allowed to visit the beaches in the South West and NOT pay towards its upkeep as SWW customers do...”
by ian, Plymouth
Tuesday, December 08 2009, 2:23PM
“Water is a human right it should be supplied to every citizen regardless of their location at the SAME price!
It is grossly unfair that in the SoutH West we have no option but to pay far more than everyone else for a resource that we cannot choose to do without. It is time this was taken to court and sorted out.
There is no FAIRNESS - NO COMPETITION - NO CHOICE!
Why isn`t there some legal eagle out there who can challenge this or are they making so much cash to that it doesn`t really matter to them?”
by Dave, Torbay
Tuesday, December 08 2009, 2:11PM
“Hang on a minute, it was the Labour Government who agreed to let Ofwat to allow South West Water to charge consumers the cost of "Clean Sweep."
A similar clean up in Northern Ireland is being funded by the Labour Government, not the consumers. Why should that be ?”
by mary, plymouth
Tuesday, December 08 2009, 12:29PM
“So let me see if I read this correctly. This person wants the governmen to use the money the we have contributed , through taxes ect, to reduce our extremely high water bills?”
by Dave, East Midlands
Tuesday, December 08 2009, 9:18AM
“ALSO dont forget its NOT about politics here .. its about whats RIGHT and whats WRONG for the customers of SWW.
IF I visited the South West and wanted to go to the beach why should ONLY SWW customers pay for its upkeep?
WHY dont SWW pay for number plate recognition systems to be placed around the beaches..after all they have the cash... I know it would not mean everyone who went to the beach payed but at least SWW bill s could be lowered!”
by Dave, East Midlands
Tuesday, December 08 2009, 9:13AM
“RE:"A spokesman for South West Water said: ¿We welcome the report's focus on the South West and its highlighting of how charges have been driven by the huge environmental investments we have had to carry out over the last two decades."
I have no idea how much SWW pay for their reports .. but they in the long run they state the obvious... so heres a report FREE of charge by little old me...
The majority of people who are supplied water by SWW are living on or below the breadline because of your prices. Many are forced to eat less and/or go without heating to pay your bills.
MANY are old and deserve better after all they fought for this country.
MANY people suffer from depression and this could be down to them worrying about paying their bills... oneof of their biggest (,if not their biggest bills ) being yours.!!”
by Red Ken, Saltash
Tuesday, December 08 2009, 9:06AM
“Morning comrades! Red Ken here, your prospective independent labour candidate. I've got to say how much I agree with Alison Seabeck when she says its all the tories fault that we have high water bills. I blame them and the anti-christ, Maggie *spit* Thatcher. Before then it was Hitler and his right wing bombs that damaged our pipes. Just shows you can never trust a tory. I have been thinking long and hard about a new policy to help good honest labour voters once I am elected and have come up with another vote winner. All new water pipes would be coloured labour red so that good honest clean water would flow through to the labour masses of Plymouth for free. To pay for this all tories would have to pay double and I would impose a new tax on garden water butts. After all, its only tories who could afford to buy a butt anyway. If any tories object, well they can just drink and shower using the rain water that they have been collecting for free. Keep the red flag flying brothers and sisters!”