LibDem want to tax water - air next!?! 15/08/03

Peter Forrest

Local Conservatives warned today that residents in Enfield Haringey could see their water bills soar by more than a third under Liberal Democrat plans to impose compulsory water meters and a new tax on water companies. This could cost a minimum of £40 a year extra, with many households paying far more. This would come at a time when Ofwat figures show that Thames Water loses 250 litres per household per day though leakage — the highest leakage loss in the country.

Peter Forrest, Conservative GLA Candidate for Enfield-Haringey explained: 

 

“Liberal Democrat plans to impose compulsory water meters would see average water bills soar by more than a third. Many households watering their lawn, washing their car, or simply with an active family, would see even higher costs. Currently only 20% of households across the Thames Water region have water meters. Forcing everyone to install an expensive meter would lead to massive costs that would simply be passed on to consumers.

 

Households should have a choice on whether to have a meter, rather than being forced to by politicians. If we want to protect the environment, Thames Water should be required to focus on the 250 litres lost every day per property due to leaky pipes. This is the highest leakage loss rate in the country.”

ENDS.

Notes:

Liberal Democrats’ environment spokesman has called for compulsory water meters (BBC Radio 4, Today programme, 9 August 2003).

In addition, it is existing Liberal Democrat party policy to introduce “a 2 per cent levy on water companies’ profits”. In practice, water companies would be likely to pass this onto consumers in the form of higher prices.

(source: Liberal Democrats, Policies on Water, February 2001.

http://www.libdems.org.uk/documents/policies/Policy_Briefings/04Water.pdf)

Watervoice, the independent body representing consumers, has commented on metering, “any financial benefits depend on how much you pay now, the number of occupants in the property and how much water you use. Generally speaking large families may be worse off” (Watervoice website, August 2003).

The water regulator, OFWAT, allows water companies to levy extra charges to reflect the higher costs of running a metered service. The “tariff differential” is £34 for 2003-04 (source: OFWAT, Tariff Structure and charges: 2003-04 report, May 2003, p.34). Extra charges for high water usage would be in addition.

http://www.ofwat.gov.uk/aptrix/ofwat/publish.nsf/AttachmentsByTitle/tariff_report03.pdf/$FILE/tariff_report03.pdf

According to Ofwat, the average unmeasured bill in 2003-04 for water is £116 and for sewerage is £129 (total £245). Average bills currently tend to be lower for metered households, purely because most large households tend to be unmetered, while the smallest users tend to be metered. Conservatives support households having a choice.