The Environment, Food and Rural Affairs Committee Chair Anne McIntosh has backed calls for UK water companies to ‘look closely’ before raising prices following Environment Secretary Owen Paterson letter to companies calling on them to recognise people's financial strain.
Anne McIntosh commented:
“The question is whether Mr Paterson’s letter to water companies is sufficient to spur the action needed to keep water bills affordable?
“Bad debt in the water sector adds around £15 to an average household’s water bill every year, yet the Government has so far failed to implement existing provisions in the Flood and Water Management Act to tackle this issue head on.
“The EFRA Committee warned more than a year ago that it was simply unacceptable for hard-pressed yet honest householders to be subsidising those who are able but unwilling to pay their water bills.
“Only three water companies have committed to introduce social tariffs under the current voluntary system even though the Government has made it clear that it expects water companies to support struggling households.
“Water companies have a lot to prove and the effectiveness of this new approach remains to be seen.”
The Efra Committee Chair has separately described the UK water sector as "in need of urgent reform" with faster action required to tackle a number of issues, including an outdated abstraction regime, household flood insurance, water metering and bad debt.
The House of Commons has today been debating the reform and infrastructure of the water industry and consumers’ bills.