Water Bill Higher Than Quoted

beatthebookienet

JGB1955 said:

I don't think £556 per annum is a huge amount to pay for unlimited fresh water and sewerage removal - but obviously I don't live where you do... I guess if you were to live in South West Water land the bill would be hugely higher (paying for all those visiting groccles).

If you don't think that £556 per annum is a lot for just the water supply in a tiny 1 bedroom flat (no washing machine/dishwasher/bath or hose), then you must be in a very privileged position. That's 14% of the annual income of someone on Universal Credit.

Personally I'm quite baffled that a private company which earns hundreds of millions in profits each year is allowed to extort people for the most basic human needs of all. The issue isn't that it has to be paid for, the issue is that lots of vulnerable people are being bullied into paying the "6 bedroom mansion with a swimming pool" rate instead of the rate they actually should be paying for their little flat.

Cardew

beatthebookienet said:

JGB1955 said:

I don't think £556 per annum is a huge amount to pay for unlimited fresh water and sewerage removal - but obviously I don't live where you do... I guess if you were to live in South West Water land the bill would be hugely higher (paying for all those visiting groccles).

Personally I'm quite baffled that a private company which earns hundreds of millions in profits each year is allowed to extort people for the most basic human needs of all. The issue isn't that it has to be paid for, the issue is that lots of vulnerable people are being bullied into paying the "6 bedroom mansion with a swimming pool" rate instead of the rate they actually should be paying for their little flat.

Firstly I am no fan of water privatisation - it should never have happened.

However you really should read up and understand how water companies are funded and charges are regulated by Ofwat.

Firstly your stupidly high charges based on the Rateable Value(RV) of the property. Water companies have no input into the Rateable Value of your property.  The RV was set prior to April 1990 by the Council valuation department and was used by the Council to collect 'local taxes'.(The Rates) The RV system ceased in 1990 and local taxes were assessed on the infamous Poll Tax and then the current system of Council Tax Bands. Water charges were based on meters for new properties and those who had meters fitted. However for those who did not get a meter fitted the Government in 'The Water Act' mandated that the water companies had to charge for water based on the RV. Neither the Water Companies or the Council have the ability to change the RV, thus the RV value in April 1990 has to be used.

Your RV was clearly an error. That error is down to whoever converted your building. You could be paying for the whole building or everyone was paying based on the same RV. The Water Company's computer has no idea if your property is a studio flat or a 10 bed mansion with swimming pool; it churns out millions of bills based on the RV.

Lastly it doesn't matter to the water company if you pay £5,000 pa or nothing(zero) as it has no effect on their profit. In simple terms the Regulator(Ofwat) stipulates how much revenue the company is allowed to raise, and how much profit they can make. Even the Government having created a monopoly situation with water supply would not be so stupid as to give the companies the freedom to charge what they wished; hence the strict Regulation; Ofwat seem to be the only Regulator with 'teeth' and are prepared to 'bite'. So if you and loads of other properties paid nothing and the company 'lost' say £1million in revenue, the company raises charges for all other customers a small amount to raise that £1million. Conversely you paying over the odds on your property means that all other customers of the water company pay a fraction less - a fraction of a penny! Either way the water Company's profit is not affected.