MSE News: Water bill prices set to rise this April

Paulgonnabedebtfree

Personally, in spite of my financial situation, I would be OK with paying more for the stuff. However, in return I would want the infrastructure in place to avoid all the scares we went through in the southeast five years ago. We must have the infrastructure to store a far higher percentage of rainfall. I work in an industry that is heavily dependant upon continuity of supply being maintained. In fact, I imagine most of us do but for most people this isn't so obvious as for me.
In the southeast, large reservoirs are in short supply. They tend to rely on aquifers instead. Therefore, although things run OK most of the time, as soon as you get two dry winters in succession, you start hitting problems. This is because aquifers only recharge properly during winter months. Much of the rest of the year the water struggles to reach them because roots suck it up.
So, yes to a higher bill, but only if they are prepared to build a decent network of reservoirs for the money instead of laundering it through share holders.

Cardew

kurgon wrote: »

Does anyone kbow how they have justified the increase? Even with the current rate of inflation this far outceeds this so where i9s the rational for Ofwat agreeing the rise?

The problem, that still exists, is that Britain largely has a Victorian water supply and sewerage system. It was well known that when water was privatised the modernisation of the infrastructure would cost(us!) multi-billions of pounds.

The post above is not correct that the water companies were sold off for 'nowt' by Thatcher. All the 10 Regional Water Companies were floated(albeit at well below their value)

http://libcom.org/library/uk-water-privatisation

IMO water privatisation is a disaster, despite a powerful Regulator who are not afraid to use their muscle. Another case of 'selling off the family silver'!

All of the companies are in a win/win situation. If the Regulator restricts charges, the modernisation of the infrastruture gets put on the back burner. This is reflected in the companies' share prices and dividends paid.

Severn Trent have stated that they believe that water charges will have to rise by 27% over the rate of inflation over the next few years.

Reaper

shjo558 wrote: »

Scotland have had a marginal decrease in water charges and marginal increase in waste water charges for 2011/12.

Scotland has its own regulator which decided that prices for 2010 - 2015 will be 5% below inflation. I'm not clear how they can afford this when England and Wales can't.

Cardew

Reaper wrote: »

Scotland has its own regulator which decided that prices for 2010 - 2015 will be 5% below inflation. I'm not clear how they can afford this when England and Wales can't.

Scotland doesn't have a water charging system like England, it is included in with the 'council Tax' equivalent .

kurgon

Cardew wrote: »

The problem, that still exists, is that Britain largely has a Victorian water supply and sewerage system. It was well known that when water was privatised the modernisation of the infrastructure would cost(us!) multi-billions of pounds.

The post above is not correct that the water companies were sold off for 'nowt' by Thatcher. All the 10 Regional Water Companies were floated(albeit at well below their value)

http://libcom.org/library/uk-water-privatisation

IMO water privatisation is a disaster, despite a powerful Regulator who are not afraid to use their muscle. Another case of 'selling off the family silver'!

All of the companies are in a win/win situation. If the Regulator restricts charges, the modernisation of the infrastruture gets put on the back burner. This is reflected in the companies' share prices and dividends paid.

Severn Trent have stated that they believe that water charges will have to rise by 27% over the rate of inflation over the next few years.

So why has this all just changed at a time when peope can ill afford it. Why haven't we seen these rises consistantly over the past 20 years?
Maybe like everyone else they should be looking at making efficiency savings rather than passing on the costs to consumers?

Cardew

kurgon wrote: »

So why has this all just changed at a time when peope can ill afford it. Why haven't we seen these rises consistantly over the past 20 years?
Maybe like everyone else they should be looking at making efficiency savings rather than passing on the costs to consumers?

We have seen such rises over the last 20 years!

I am no apologist for the water companies, but they have a huge job trying to modernise a Victorian infrastructure that was built to cope with about a third of the properties, all of whom used far less water. Just today I was reading this:

Thames Water’s plans to build a 24-mile long super sewer at a cost of £3.6 billion has generated anger across the capital.

That is serious money!

kurgon

Cardew wrote: »

We have seen such rises over the last 20 years!

I am no apologist for the water companies, but they have a huge job trying to modernise a Victorian infrastructure that was built to cope with about a third of the properties, all of whom used far less water. Just today I was reading this:



That is serious money!

I recognise that the infrastructure is poor and needs to be addressed but the timing is what is so poor. Is this the time to be hiking prices? I would suggest not. They should be looking at ways that they can manage the work by looking at their own infrastructure first and not just passing on what equates to a massive preice hike to consumers. It's not like we have a choice as to supplier, and I would suggest that that is where Ofwat should have been mmore invloved. These constant rises in commodity prices are driving up inflation and taking us all into a potentially damaging situation.

MOCHA

It's up by over 9% here (Northumbria Water area) and not far off a pound a day.........:(
I'll moan and groan about it but seeing situations such as the current crisis in Japan and remembering the chaos in Northern Ireland over Christmas when the pipes burst makes me count my blessings.

Cardew

kurgon wrote: »

I recognise that the infrastructure is poor and needs to be addressed but the timing is what is so poor. Is this the time to be hiking prices? I would suggest not. They should be looking at ways that they can manage the work by looking at their own infrastructure first and not just passing on what equates to a massive preice hike to consumers. It's not like we have a choice as to supplier, and I would suggest that that is where Ofwat should have been mmore invloved. These constant rises in commodity prices are driving up inflation and taking us all into a potentially damaging situation.

You don't seem to appreciate that the Government - via the Regulator - have laid down targets for improvements to the infrastructure that every company must meet. So perhaps you should get onto the Goverment?

If they agreed that the targets shouldn't be met and prices held or reduced, would your solution be to sack all the employees involved in improving the infrastructure , pay them redundancy, and put all the specialist equipment into storage or sell it off?

Gothicfairy

MOCHA wrote: »

It's up by over 9% here (Northumbria Water area) and not far off a pound a day.........:(
I'll moan and groan about it but seeing situations such as the current crisis in Japan and remembering the chaos in Northern Ireland over Christmas when the pipes burst makes me count my blessings.

I think this is a very good way to look at life at the moment, I watched the news tonight and it is enough to make you cry. The fact that someone pays about a quid a day for clean and safe water is nothing really when you think about how many people a day die through lack of water or lack of clean drinking water.