Dr Howard Stoate, has criticised the decision of OFWAT to allow a 24% increase in water charges in the Thames Water region over the next five years.

“I am extremely concerned about the impact this level of increase will have on my constituents, particularly those on low incomes, and also about the phasing of this increase. Whilst the average annual increase is 4.1%, customers are being asked to pay an extra 14.9% in 2005-06, which strikes me as disproportionate and unfair,” said Dr Stoate.

“For a single pensioner receiving the Minimum Income Guarantee for example, this increase, which will bring the average annual bill up to £246, will mean that they have to spend 4.4% of their disposable income on water charges.”

Dr Stoate has written to Environment Minister, Eliot Morley to urge him to review the pricing proposals. He has also told the Minister that it is unfair that local water customers alone are being asked to pay for the necessary improvements in the infrastructural network.

“In my view a proportion of the extra costs involved in repairing and upgrading the infrastructural network should be borne by the Treasury rather than just local water customers. Not only would this help to ensure that service users do not have to pay such a large increase in their charges next year but it would also help to even out the significant regional variations between charges that currently exist,” said Dr Stoate.

Dr Stoate has also asked the Government to launch a publicity campaign to promote its water bill capping scheme for low income groups. The scheme allows low households in receipt of income related benefits are able to apply to have their metered water bills capped at the level of an average household bill. Take up of the scheme however has been very poor. Only 7,000 households across the country, or 2% of eligible households, have applied to have their bills capped.

“Take up of the scheme has been very low largely because most eligible households simply aren’t aware that the scheme exists,” Dr Stoate told the Minister. “I feel that unless a major campaign is launched to promote the scheme and boost take up then many of the low income households in my constituency will struggle to pay their water bills in the years ahead,” he added.

Notes