News
South West Water Bill Price Trial Now Underway
A new two-year trial by utility company South West Water (SWW) that will see 3,500 domestic and business customers charged more for water usage in the summer months but less in winter is now underway.
According to the company, the aim of the project is to identify fairer ways of charging customers while protecting the environment, the BBC reports, with people on the seasonal tariff given lower rates for water between October and March. However, for the rest of the year, associated costs will be three times higher.
A lower than normal base price for water will be implemented for customers on the summer peak tariff, with this price increasing once a usage threshold has been reached.
Both industry regulator Ofwat and the Consumer Council for Water (CCW) back the trial, with Ofwat saying: “We welcome the company carrying out this trial and the reality is that most customers – perhaps two-thirds, but likely many more – will be better off as a result.”
However, some local residents have voiced concerns about being included in the trial without being given the chance to opt out, with Hazel Foster – Wellswood ward councillor in Torbay – saying that almost 30 people had been in touch with her about the project.
She told the news source: “It’s really important that SWW fully understands the anger of residents here in Torbay. This trial is unfair and needs to be stopped.”
The CCW made further comments, saying that the trial did need to be compulsory as including self-selecting or consenting groups “would not produce results representative of the wider customer base”.
The future for customer bills
Interestingly, however, this news comes as Ofwat publishes its annual water company performance report, with some disappointing findings across the board, so it would seem – including for SWW.
Poor performance on the part of utility companies around the country has cost the water sector £157.6 million in 2024, with firms falling even further behind on key targets set out by the regulator… customers can expect to see their bills reduced to reflect performance penalties in 2025-2026.
The stretching targets imposed by Ofwat for the last five years were intended to deliver better outcomes for customers and the environment alike, with performance penalties for failures in this regard totalling over £430 million since 2020.
One of the biggest areas where water firms have fallen behind is pollution. Commitments were in place to reduce such incidents by 30 per cent between 2020 and 2025, and although a drop of 15 per cent was seen between 2019 and 2022, the increase in incidents in 2023 meant that only a two per cent reduction was achieved.
For nine out of the 11 water companies, an increase in incidents was seen in 2023, with just one company meeting the required performance commitment level.
To tackle this head on, Ofwat has already proposed enforcement penalties on Northumbrian Water, Yorkshire Water and Thames Water to the tune of £168 million, as well as suggesting a record £88 billion investment package over the next five years to cut sewage spills by 44 per cent.
In this latest report, SWW was rated as “average”, an improvement on the last review where it was found to be “lagging behind” – and according to the Western Morning News, the company will have to take £17.4 million off customer bills next year – almost double what it had to pay out for the previous year (£9.2 million).
SWW was found to have one of the biggest percentage declines in customer satisfaction and one of four companies registering an increase in water leaks, as well as recording 111 pollution incidents across 10,000km of sewer network in 2023, representing an 80 per cent increase – the biggest of all the water firms.
Commenting on the latest report, Ofwat CEO David Black said: “It is clear that companies need to change and that has to start with addressing issues of culture and leadership. Too often we hear that weather, third parties or external factors are blamed for shortcomings.
“Companies must implement actions now to improve performance, be more dynamic, agile and on the front foot of issues. And not wait until the government or regulators tell them to act.
“As we look towards the next price control, the challenge for water companies is to match the investment with the changes in company culture and performance that are essential to deliver lasting change.”
Bill reductions
If, as a business, you’re keen to reduce your water bills, one of the best ways to achieve this is to have a water audit of your site carried out so you can see where you can become more water efficient.
If you’d like to find out more about how to reduce your water usage and consumption, and start operating more sustainably as a business, get in touch with the H2o Building Services team today.