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

JD1492

Afternoon All,

Well, I got a reply to my lengthy complaint letter to Peter Simpson - the CEO of AW. This is what he said (I've removed superfluous material, any my comments are in brackets):

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Dear ********

I am very sorry for the concern caused by thte phasing out of our SoLow tariff, and the effect this will have on your bills. The SoLow tariff was introduced to help low water users switch to metered charges at a time when the standing charges made up a high proportion of the bill. We are the only water companay to have a tariff like SoLow. (You were the only water company with a tariff, and now you're killing said tariff off! So you're not that great, are you, AW?!) Over time we have lowered the standing charges and the volumetric charges now form the main part of the bill.

The SoLow tariff was not designed specifically for those on low incomes, but for customers who use low amouonts of water. (A tad contradictory, me thinks!) We found that this included large families who may be as conservative with their water but could not take advantage of SoLow and struggle to pay their bills were subsidising those who could afford the charges. (I assume he means "and those who struggle"?)

We have also found that with very low users their bills are not covering the charges we incur in providing the services and this was creating a situation where customers on our Standard Tariff were subsidising those on SoLow. (Right, so because you weren't making enough money from the SoLow customers, you've decided it best that everyone else pays more - presumably to increase your profits!)

You are entitled to our LITE tariff. I am sorry we did not tell you about the LITE tariff when you spoke to us. All our agents have been briefed to promote this tariff where it may help. (So how many of you in the MSE thread, knew about AW's LITE tariff?)

Thanks for making me aware of the situation, and once again, please accept my apologies.

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I guess I should be grateful that he responded at all, but I am disappointed that he thinks it's acceptable that everyone should pay higher charges, simply because a few were subsidising those less well off than themselves. (Isn't that how all subsidised services work: those that can afford, subsidise those that can't?)

I'd recommend that those of you who are on SoLow, and will soon be moved off of it, telephone AW and see if you can be put onto the LITE tariff. The details about it are shown on AW's site - but I am unable to post the link, as I'm a new MSE user.

It may not be as cheap as SoLow, but if it's cheaper than what you would be paying once your bills increase to the same size as those on Standard Tariff's, then it's better the money is in your pocket, and not AW's!

Ken68

http://www.anglianwater.co.uk/household/your-account/bills-and-payments/tariffs/lite/


Via Citizens Advice.

water_saver

Hi i am new to this forum.
i am in dispute with Anglian water.In my opinion, the point with Solow is simpler than indicated in previous posts.

when i chose my electric supplier, i selected a company that promoted low usage and i chose to pay more for Kwhr used and as a low user to pay no standing charge. This promotes low usage of the valued resource (fewer power stations, lower emissions)

when i chose my water tariff ,i could not select my supplier, i selected a tariff that charged more for the water i used, and had no standing charge. this promotes low usage of a finite resource (exactly as the the pleading of the water company in current national advertising)

The principle is very simple, if everybody reduced there water usage to the degree i have achieved, Anglian water would not have to build expensive extra water processing plant

Solow Tariff is not about subsidy or unfairness to higher water users it is common sense and a positive promotion of low water usage

Cardew

water_saver wrote: »

Hi i am new to this forum.
i am in dispute with Anglian water.In my opinion, the point with Solow is simpler than indicated in previous posts.

when i chose my electric supplier, i selected a company that promoted low usage and i chose to pay more for Kwhr used and as a low user to pay no standing charge. This promotes low usage of the valued resource (fewer power stations, lower emissions)

when i chose my water tariff ,i could not select my supplier, i selected a tariff that charged more for the water i used, and had no standing charge. this promotes low usage of a finite resource (exactly as the the pleading of the water company in current national advertising)

The principle is very simple, if everybody reduced there water usage to the degree i have achieved, Anglian water would not have to build expensive extra water processing plant

Solow Tariff is not about subsidy or unfairness to higher water users it is common sense and a positive promotion of low water usage

Welcome to the forum.

SoLow is(was) about a subsidy. Anglian state unequivocally:

Why is this Happening

In short, SoLow customers receive a subsidy on their bill and that subsidy is paid for by other customers. The subsidy amounted to every non-SoLow customer paying an £7 extra per year to fund the preferential SoLow rate.

Anglian also explain clearly that larger households might be even more water efficient than SoLow customers, but not benefit from the SoLow tariff.

The lower charges for SoLow favours households with only 1 or 2 occupants, not necessarily households that are most water efficient.

For example who is the most water efficient? A single person using, say, 30 cubic metres a year or a family of six using, say, 100 cubic metres a year.

Every other water company gives the same incentive to all their metered customers. i.e. for every one cubic metre reduction in their consumption, they reduce their charge by one times the cubic metre rate(for water and sewerage)

Mee

Hi All,

Recently received my water bill and pleased with myself for cutting my usage by 3 m3 from 17 to 14 for July to January, but not really reflected in my bill due to the phasing out of the SoLow tariff.

pencekeeper

I always read my meter 1 April as they estimate usage for todays date in the upcoming bill.

I've used 16m3 for the year but with the bill standing charges going up and up even if I use 0 I'll still soon be paying more.

It may have been better if they had simply increased the unit charges if there was any credence to the whole notion it was heavily subsidised - not force people onto a tarrif that does not incentivise efficient water usage.

Cardew

pencekeeper wrote: »

It may have been better if they had simply increased the unit charges if there was any credence to the whole notion it was heavily subsidised - not force people onto a tarrif that does not incentivise efficient water usage.

I don't understand that point.

As stated earlier in this thread, you now have exactly the same incentive as every other metered water customer in UK, i.e. the incentive is that the less water you use, the less you pay.

Every other water company gives the same incentive to all their metered customers. i.e. for every one cubic metre reduction in their consumption, they reduce their charge by one times the cubic metre rate(for water and sewerage)

Mee

Mee wrote: »

Hi All,

Recently received my water bill and pleased with myself for cutting my usage by 3 m3 from 17 to 14 for July to January, but not really reflected in my bill due to the phasing out of the SoLow tariff.

Received my Jan-Jul bill - another milestone met - have reduced by usage to 12 m3 :j Though with the standing charge increasing it doesn't really reduce my bill!

Ken68

Congratulations Mee. You have a milestone and a millstone...lol.
My bills have been annual ending mid September except for last year when it jumped to end Sept. So 1 year 1 week.
Another fiddle probably, make it difficult to compare yearly.

Mee

Hi guys,

I've cut my average six monthly consumption from 19 m3 to 13m 3 but this saving is wiped out by the increasing standing charge on SoLow. Can I check what others are paying?

For 14/7/17 - 31/1/2018
I'm being charged

232.90p / 201 days at 41.80 year (prev £31.70)

I got into my head there would be a gradual increase