Thames Water price hike

itm2

Having read that Ofwat had stifled Thames Water's plans to hike prices 11+% to pay for infrastructure upgrades last yeaer, I've just noticed that my monthly payments were increased from £28 to £32 last December (around 15%). Have any other TW customers noticed a similar uplift?

giraffe69

Are you on a meter? Could higher use be the reason?

warwicktiger

A water shortage?

itm2

giraffe69 wrote: »

Are you on a meter? Could higher use be the reason?

I've been on a meter for several years, and my usage (both water and waste water) in the last 6 months was more or less identical to the same 6 month period last year (when I was paying £28 per month), and almost identical to the same period in 2012. So my consumption has remained pretty constant but my charges have increased 15%.

???

fizzy_lizzie

Got a "Bill" from them. Raising my monthly DD from £25 to £38. I'm not Einstein but even I could see that's 50% increase. Rang them. Asked why. Man looked into my usage etc and agreed with me. Said it wasn't a price increase, but based on my predicted consumption. I'm on a meter. He said it is just the computer calculating and prediction. I'd had a house full of guests last July, which showed an increase, but since their departure things reverted to normal. He is sending someone round to do a current meter reading and meanwhile……. put my payment back down to £25 pcm.
Result!
I seem to spend all day every day fighting some utility company about some overcharging, not to mention Other non utility companies.
Am exhausted - but triumphant.

itm2

fizzy_lizzie wrote: »

Got a "Bill" from them. Raising my monthly DD from £25 to £38. I'm not Einstein but even I could see that's 50% increase. Rang them. Asked why. Man looked into my usage etc and agreed with me. Said it wasn't a price increase, but based on my predicted consumption. I'm on a meter. He said it is just the computer calculating and prediction. I'd had a house full of guests last July, which showed an increase, but since their departure things reverted to normal. He is sending someone round to do a current meter reading and meanwhile……. put my payment back down to £25 pcm.
Result!
I seem to spend all day every day fighting some utility company about some overcharging, not to mention Other non utility companies.
Am exhausted - but triumphant.

Thanks for sharing that - it's inspired me to email Thames Water to query it.

I've looked through my previous bills, and during the last 6 months my average daily usage was 8% lower than it was during the previous 12 months. But my payments have just been increased by more than 14%. Let's see what they have to say....

itm2

For anyone who might be interested, below is Thames Water's explanation:

"Please note that each payment plan is set up to cover the amount of water we estimate you have used since your last bill, any amount owing from the previous year's charges and the amount of water we estimate you will use for the following year. The total payment plan amount, which also allows for inflation, is then divided into instalments which are payable monthly for the next year. This means the monthly amounts can vary every time a new plan is set up.

We are able to estimate what your future water usage will be, based on your meter reading history. If we do not have a history of usage, we can base the estimate on the number of people living at the property.
If the amount of water you use turns out to be higher or lower than the amount we set the payment plan for, the next plan will be adjusted accordingly. Any amount due or overpayment will be shown on the plan as a 'carried forward' balance.

Please find below the calculation of the payment plan amount:

Details of the bill issued on 23 July 2013:

• Consumption = 65 cubic metres

• Bill Amount = £166.91

• Period = 24 January 2013 – 22 July 2013 (179 Days)


Details of the bill issued on 25 January 2013:

• Consumption = 62 cubic metres

• Bill Amount = £154.95

• Period = 31 July 2012 – 24 January 2013 (177 Days)

Total bill amount for 356 days (179+177) = £166.91 + £154.95 = £321.86

Average bill amount for one day = £321.86 / 356 = £0.90

Hence, estimated charges for next 365 days = £0.90 x 365 = £328.50 (approximately).

However, we took it as £365.00 considering the annual increase in the water service charges.

Further, there was an outstanding balance of £19.73 on your account on 19 November 2013.

Hence, the total payment plan amount = £365.00 + £19.73 = £384.73.

We divided this amount into 12 instalments of £32.00 and the balance of £0.73 will be carried forward to the next payment plan.

When we set up your last payment plan, there was an outstanding balance of £13.65 on your account. The estimated annual amount calculated for the year was £325.00. Hence, we set up your plan with a plan amount of £338.65(£13.65+£325.00) which was divided into 12 instalments of £28.00 each.

For your convenience, we have now reset the direct debit with the total of 9 instalments. The first instalment of £28.00 will be taken from your bank account on 19 March 2014.

The last instalment of £28.00 will be due on 19 November 2014. An extra payment of £1.27 will be adjusted in the next payment plan."

I've queried this part:
Average bill amount for one day = £321.86 / 356 = £0.90

Hence, estimated charges for next 365 days = £0.90 x 365 = £328.50 (approximately).

However, we took it as £365.00 considering the annual increase in the water service charges.


as it would seem to imply an annual service charge increase of 11%, which sounds higher than even Thames Water can justify.