Water company's thirst for profit is a burden on us all

Trusted article source icon
Thursday, February 18, 2010
Profile image for This is Exeter

This is Exeter

I APPRECIATE North Devon MP Nick Harvey's attempts to put our scandalously high water charges on the national agenda.

I also think it's appalling that South West Water charges us almost 50 per cent more than the national average, makes obscene profits, and does not do enough to help those struggling to pay.

The proposals Mr Harvey was due to present to Parliament last week would make water bills the same across the country, thus lowering those in the South West substantially.

All water companies would pay into a national central investment fund, to be shared out fairly according to need. South West Water would effectively be part-financed by residents of the South West, and partly by a levy on other water companies.

Unfortunately, the bill is doomed to failure, as it is not a Government Bill, and there is not much legislative time left anyway.

I'm sure I'm not alone in wishing it wasn't doomed. My water and sewerage bill is heading towards £1,000 a year, while South West Water, in the just the first half of last year, made an underlying operating profit of more than £100m. They must be laughing at us.

When criticised for their profits, they tell us their costs are so high because of the huge length of coastline they have to avoid polluting and the investment needed to do so.

True, but in Wales, water bills are lower and the national water company even manages to pay an annual dividend to its customers. (That's right, they give money back.)

South West Water would probably say that's unfair, as Wales has a larger population to share the costs.

But Wales also has a much longer coastline. And most importantly, unlike South West Water, the Welsh company has no shareholders to satisfy.

It is owned by its customers and its primary function is to provide a best value service, not make profits.

Imagine what a difference it would make to our bills if the fortune paid to South West Water's shareholders was divided among us all.

Much as I hate the size of my own water bill, I can currently afford to pay it. The most shocking thing about South West Water, and other water companies, in my opinion, is the limited help they offer to those who cannot.

Imagine if you lost your job and were forced to rely on benefits. Your council tax is paid for you, your prescriptions are paid for you and you'd eventually get help with your mortgage interest.

But to get help with your water bill, you would have to have a water meter, as well as either three children under the age of 19, or a medical condition such as renal failure.

The application form is six pages long. If you were successful, you wouldn't get your bill paid, but have it capped at an annual maximum of £500, which is already more than most people elsewhere pay.

This is disgraceful. Money used by South West Water to pay dividends to its shareholders should, at the very least, be used to properly help those who cannot pay.

Nick Harvey is right: this system needs changing.

0
Tweet this article
Report

Be the first to comment

max 4000 characters
 
 
 
 
 
 

Tell us about your area

Got some interesting news? Write about it and let your whole community know.

  Write an article