Is anyone in actual disbelief at the new water charges coming in 2025?

MattMattMattUK

Troytempest said:

Years of poor control by the regulator allowing water companies to get away with murder - it really is that simple.

A significant portion of the issues are outside of the control of the regulator, the government did not give them enough control of the suppliers financial operations. Ofwat got to regulate profit margin, operational costs, exec and board pay etc. which was initially thought adequate. The suppliers then realised that they could borrow huge sums against the assets of the business and then pay out that money as increased dividend, that also increased C-Suite pay as they had tied some of that to dividends. That was not a fundamental issue (although a bad long term business strategy) when they could borrow at 0.5%, but once interest rate increased and their cost of capital went up to 5-8% and the interest on their debts exceeds their profits that caused a huge problem. 

Scarum

MattMattMattUK said:

306chris2000 said:

Just got my UU bill raising from 663 to 796. Cheeky !!!!!!, 

Are shareholders taking a reduced dividend?

There is a very real possibility that the suppliers will not be issuing a dividend for several years, or it will be a minimal yield. With some of the suppliers, Thames Water the most likely candidate at the moment their is a significant risk that they will become insolvent and the shareholders will lose some or even all of their investment. 

Business is business, the best businesses succeed, the worst businesses do not, and they fold.  How on earth an essential service like the provision of public water can be a private business beggars belief.  It is not as if there is competition between the UK water companies to strive to improve their services to their customers.

Duncan77

Have a look at the CCW website. 
There are ideas to change the structure of charges into 3 blocks. 
Low users will pay much less and high users much more.  
Encourages frugality, which can only be a good thing, particularly in areas of water stress. 
I think we should campaign for this system.

MattMattMattUK

Duncan77 said:

Have a look at the CCW website. 
There are ideas to change the structure of charges into 3 blocks. 
Low users will pay much less and high users much more.  
Encourages frugality, which can only be a good thing, particularly in areas of water stress. 
I think we should campaign for this system.

I would substantially benefit from that, but I do not believe that it is the right system. Other people should not be subsidising me.

YorkBrucie

Water should be treated like any other utility/service.  If you don't like the company, change.  Unfortunately to do that at the moment you would need to move house.
Water companies know this and charge what they want because there is no competition.
Or is that too simple?
And yes, I have just received my Yorkshire Water bill with an increase of 35%.

MattMattMattUK

YorkBrucie said:

Water should be treated like any other utility/service.  If you don't like the company, change.  Unfortunately to do that at the moment you would need to move house.

That is not possible with the way the water and sewerage supply works.

YorkBrucie said:

Water companies know this and charge what they want because there is no competition.
Or is that too simple?

That is too simple. The water suppliers do not set pricing, Ofwat does, based on allowable costs and investment needs. Part of the reason that prices need to rise so much now is due to huge underinvestment over the last four decades, that kept bills down for forty years but also means that lack of investment now needs to be made up for.

tghe-retford

Even in the cradle of free enterprise, the United States, they did not privatise their water and energy distribution. Possibly foreseeing that this very situation would occur where households face ever higher eye-watering increases in bills to fund dividends, private pension schemes and a desire for ever greater profits knowing that consumers have no choice because water is essential for life and sewage is essential for sanitation. We've had the period of lack of investment to maximise returns, now we are about to enter the period of water and sanitation becoming luxuries that increasing numbers of people will simply not be able to afford as prices skyrocket thanks to a regulator that is simply not fit for purpose.

Hoenir

tghe-retford said:

Even in the cradle of free enterprise, the United States, they did not privatise their water and energy distribution. 

Doesn't mean that many don't struggle to afford their water bills. 

 A 2019 survey found that U.S. households in the bottom fifth of the economy spent 12.4% of their disposable income on water and sewer services.

LightFlare

compared to electricity and gas our water bill is a bargain.
plus it’s the easiest to reduce by gathering 

35har1old

Max68 said:

"But what I don't understand is, if there is new demand, then you have new paying customers."

Used this as an example re Council Tax as well.  No new services, thousands of new residents (payers) but Tax still goes up!

More people more council workers required 
Rising cost of building maintenance 
New leisure centers, demolition of the old center.Part of the roof has blown of twice (New) let's hope the insurance will cover it.
If the council decide to go to electric vehicles 
 New bin lorry £320000