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Standing Charges Are More Than 50% of My Water Bill

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.
Comments
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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?5 -
Because otherwise there is little incentive to use less water which we all need to do.1
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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.1
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Care: 2022 thread revival with no new questions.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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