Newly-appointed Secretary of State for Environment, Food and Rural Affairs, Steve Reed has described the proposed water bills rises announced by Ofwat this morning as “the result of years of failure.”
Newly-appointed Secretary of State for Environment, Food and Rural Affairs, Steve Reed has described the proposed water bills rises announced by Ofwat this morning as “the result of years of failure.”
Commenting on Ofwat’s draft decisions on the water companies’ AMP8 business plans, Steve Reed said:
“Today’s water bill rises are the result of years of failure.
“The new Government will force water companies to tackle illegal sewage dumping into our rivers, lakes and seas. Firm action should have been taken much earlier to ensure money was spent on fixing the sewage system, not syphoned off for bonuses and dividends.
“The decisive steps set out today mean this will never be allowed to happen again.
“After meetings with water bosses this afternoon, they have now signed up to my initial package of reforms as we work towards cleaning up our water, prioritising the interests of water customers and the environment, and fixing our broken sewage system.”
This afternoon the Secretary of State for Environment, Food & Rural Affairs met with representatives of 16 water companies across England & Wales. Companies have now signed up to the Government’s initial package of reforms.
After writing to Ofwat, the Secretary of State has secured agreement that:
- Funding for vital infrastructure investment is ringfenced and can only be spent on upgrades benefiting customers and the environment. Ofwat will also ensure that when money for investment is not spent, companies refund customers, with money never allowed to be diverted for bonuses, dividends or salary increases.
- Water companies will place customers and the environment at the heart of their objectives. Companies have agreed to change their ‘Articles of Association’ – the rules governing each company – to make the interests of customers and the environment a primary objective.
- Consumers will gain new powers to hold water company bosses to account through powerful new customer panels. For the first time in history, customers will have the power to summon board members and hold water executives to account.
- Strengthen protection and compensation for households and businesses when their basic water services are affected. Subject to consultation, the amount of compensation customers are legally entitled to when key standards are not met will more than double. The payments will also be triggered by a wider set of circumstances including Boil Water Notices.
The steps sit alongside the Government’s manifesto commitments to put failing water companies under tough special measures to clean up our waterways.
Consumer Council for Water (CCW) in response to this morning’s announcement from the regulator Ofwat on its draft determinations for water companies in England and Wales.
CCW warns “millions of people will feel upset and anxious at prospect of water bill rises”
Mike Keil, Chief Executive of the Consumer Council for Water (CCW), said:
“Millions of people will feel upset and anxious at the prospect of these water bill rises and question the fairness of them given some water companies’ track record of failure and poor service.
“Customers understand investment is urgently needed but they need reassurance that every pound of their money is going to be well spent. Trust in water companies has never been lower and that won’t change until people see and experience a difference – whether that’s having the confidence to swim at their favourite beach or receiving help if they are struggling to pay their bill.”
“We estimate about 2 million households in England and Wales currently cannot afford their water bill and while the increase in financial assistance is welcome it falls short of what is needed. Over the summer we’ll be carrying out research with customers of every water company to gauge whether they feel the regulator’s proposals are affordable and deliver what people want. We expect Ofwat to listen and act on what customers tell us.”
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