Standing Charges Are More Than 50% of My Water Bill

sixstringsandthings

Standing Charges Are More Than 50% of My Water Bill

And, as I continue to reduce my water consumption, this percentage will only increase.

Using less than 40% of the water I was a year ago, I’d expected to see my direct debit falling. The fact is it hasn’t. Looking more closely at my most recent statement I can see why. The standing charges are over £9, more than half of the £18 monthly direct debit.

This must surely be a wake-up call for standing charges to be overhauled.

Two years back my usage was much higher, and the fee was a relatively reasonable proportion of the final bill. Since the cost-of-living crisis has worsened I’ve cut consumption, but this has proved to have had only a negligible effect on the total payment due. What worked reasonably one year back simply doesn’t now.

Perhaps one solution might be to apply the charge on a percentage basis. The greater the usage, the greater the charge. This would re-incentivise both low-unit users and larger households similarly, and maintain their green motivation.

Looking ahead, I believe that if the approach used to levy the standing charge is not redesigned, this issue will balloon rapidly. As usage continues to be cut, water companies will seek to recoup the deficit, and standing charges will see rise after rise.

There needs to be immediate intervention.

400ixl

The standing charge is to cover the supplier fixed costs (all of the infrastructure used to get the water to your premise, the overheads of the business to operate etc). These don't change because you are using less, that is the variable element of the bill for consumption of water in and processing of waste out.

Why do you believe you should pay a lower proportion of the fixed costs that someone else when it takes the same infrastructure and services to provide the service to both?

Mountainbiker2

Because otherwise there is little incentive to use less water which we all need to do.

MattMattMattUK

The purpose of water meters is to ensure people pay for what they use, if that incentivises people to use less then than is a benefit, but not the primary goal.

dunstonh

Care: 2022 thread revival with no new questions.

Oldmoondog

What is the point of trying to save water, when the water bill keeps rising with the standing charge. Where is the incentive? Can the water companies please comment on that? My water bill has increased Year on year despite using LESS water than two years ago. It seems the main culprit is the standing charge. In particular the sewage standing charge has increased from £33 to £52 to £59 over the past three years. Whereas the water standing charge has gone from £16 to £22 to £25. I know the standing charge is the cost of 'providing' the water and dealign with the waste. We are paying for a lack of investment in the infrastructure in the past. Instead of paying fat bonuses why don't they invest that in the infrastucture and give us a break from more rising costs.

QrizB

What is the point of trying to save water, when the water bill keeps rising with the standing charge. Where is the incentive?

Because, even with standing charges, using more water will cost more.

It's simple arithmetic.

Imagine that your standing charge is £1/day and your water costs £5/cubic metre. If you use one cubic metre in a day, the bill for the day will be £6. If you reduce consumption to half a cubic metre, your bill will be £3.50. That's a £2.50 saving.

Now imagine the standing charge goes up to £10/day. Using one cubic metre a day would cost £15, using half a cubic metre a day would cost £12.50. That's still a £2.50 saving.

BikingBud

https://forums.moneysavingexpert.com/discussion/comment/82065804#Comment_82065804

Someone has to pay for all the leaks so they afford to pay the shareholder divvy - You cannot expect the utility companies to run an effective, efficient and fair service.

Farway

"Instead of paying fat bonuses why don't they invest that in the infrastucture and give us a break from more rising costs."

Fat bonuses & dividends are the business model, not fair prices. The privatisation was deliberately geared to give fat bonuses etc complete with a toothless watchdog.