MSE News: Anglian Water SoLow customer? It's axing the tariff meaning bill hikes

Mee

Just to update that AW offloaded me on to my main water company for an explanation. Said water company claims they included it in a general leaflet and on the bill, but admitted some shortcomings!:

A leaflet explaining Anglian Water’s charges was included with our bills issued during 2015. The leaflet contained a section under the heading ‘Changing tariffs’ that mentions the phasing out of SoLow and how our customers may obtain more information. You should have received the leaflet with your July 2015 bill, but I have attached a copy for you in case you no longer have the original.

I understand from the email trail you provided that Anglian Water sent a separate letter to their customers explaining the situation in detail. Having reviewed our method of communication in comparison I do feel that we could have taken a similar approach when letting our customers know about this change. I have therefore referred this to our Communications Team to assess whether any work can now be done to make sure that all of our customers on the SoLow tariff are fully updated.

The level of service we provide to our customers is extremely important to us and we welcome all feedback we receive as this enables us to make improvements. It is therefore very much appreciated that you have taken the time to bring this matter to our attention.

From leaflet:

Changing tariffs

We've got two social tariffs for customers receiving certain benefit payment and for those who use high amounts of water. They're called WaterSure and AquaCare Plus, Our SoLow tariff will be phased out over the next three years. If you use less than 75 cubic metres each year. you can stay on the tariff until it is discontinued. but if you use more than this you should call us today to switch and start saving now, Go online www.anglianwater.co.uk/charges or call 03457 919 155 for more information.

The change had already been implemented when they claim they notified me. To make matters worse they make little effort to draw it to the attention of all affected 'in advance'.

Increasingly, they (water companies and this government) use the "x subsidises y" argument to justify their actions and we squabble amongst ourselves and are distracted / ignore the real villain of the piece.

There is nothing like the 'divide and rule' approach.

Cardew

Mee wrote: »

Increasingly, they (water companies and this government) use the "x subsidises y" argument to justify their actions and we squabble amongst ourselves and are distracted / ignore the real villain of the piece.

There is nothing like the 'divide and rule' approach.

Whilst you are correct about the lack of communication, AW are completely correct in that 'X subsidises Y' on SoLow.


Why are AW the villains in this case? If you understand the way water companies are funded, AW are correct when they say 'We won’t make any extra money from this change.' Any extra SoLow customers will pay in the future will mean other customers will pay less.

Mee

Cardew wrote: »

Whilst you are correct about the lack of communication, AW are completely correct in that 'X subsidises Y' on SoLow.


Why are AW the villains in this case? If you understand the way water companies are funded, AW are correct when they say 'We won’t make any extra money from this change.' Any extra SoLow customers will pay in the future will mean other customers will pay less.

I hardly think or believed I was being subsidised by anyone given the extra amount paid per cubic metre v no service charge.
When AW et al show me the data to support there assertions that:
'X subsidises Y' and 'We won’t make any extra money from this change.' I will believe it...

Call me cynical or infantile, but when they state 'We won’t make any extra money from this change.' I think " because they're making lots of money anyway".

Ken68

You're got to trust OFWAT to do a proper check come price review time.


This should be interesting.


http://www.ofwat.gov.uk/regulated-companies/improving-regulation/extending-retail-competition-to-households/


....by summer 2016.

Cardew

Mee wrote: »

I hardly think or believed I was being subsidised by anyone given the extra amount paid per cubic metre v no service charge.
When AW et al show me the data to support there assertions that:
'X subsidises Y' and 'We won’t make any extra money from this change.' I will believe it...

Call me cynical or infantile, but when they state 'We won’t make any extra money from this change.' I think " because they're making lots of money anyway".

Well if you 'hardly think or believed I was being subsidised by anyone given the extra amount paid per cubic metre v no service charge.' why are you and others upset at the ending of SoLow? When SoLow ends you will be on the same charges as every other metered customer with AW; you pay a service charge and xxp and yyp for water and sewerage.


If you want to see that AW are making no 'extra' money from the phasing out of SoLow just go to the Regulator(Ofwat) and either read their publications or ask them - or ask The Consumer council for Water.


I can understand you being cynical, and I am no fan of the water industry. If AW were allowed to make extra money, they wouldn't hesitate. However the revenue they can raise, and profit margin from that revenue is very strictly controlled by Ofwat. It is they who stipulate any annual increase or decrease in customer charges to meet the authorised revenue.


P.S.
You are quite correct that AW are making lots of money - along with all other water companies. They are in a win/win situation and this is reflected in their share prices.

Mee

Ofwat's effectiveness is highly questionable - about as a effective as a bat without echolocation:
Ofwat criticised for letting water companies pocket profits

Water companies received £800m profits windfall at the expense of customers

Water bills set to increase despite damning report over pricing



Roll on the The Water Act

matelodave

no need to shout

Ken68

With the Chairman of OFWAT being an ex Anglian Water executive, can't see fair play anyway.

Cardew

Mee wrote: »

Ofwat's effectiveness is highly questionable - about as a effective as a bat without echolocation:
Ofwat criticised for letting water companies pocket profits

Water companies received £800m profits windfall at the expense of customers

Water bills set to increase despite damning report over pricing



Roll on the The Water Act

What has anything in that post to do with the phasing out of the SoLow tariff by AW?


Could it be that one of AW's customers has complained(with justification) that it was unfair that they were subsidising SoLow customers?


You apparently dispute AW's written statements that SoLow customers are subsidised by other AW customers, and also likewise dispute that AW make no money by removing that subsidy.


That being the case, why not take action against AW? You doubtless will have grounds to prove AW are lying??

Cardew

Ken68 wrote: »

With the Chairman of OFWAT being an ex Anglian Water executive, can't see fair play anyway.

Come on Ken, you can do better than that! The Consumer Council for Water looks after the interests of water customers; why not try and see if they will look at any grievance? Unless of course they were instrumental in insisting AW ended the blatantly unfair SoLow tariff;)