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Ofwat blamed for high water bills by committee of MPs

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    Ofwat blamed for high water bills by committee of MPs

    Only in England could you get away with this. Never understood water meters, I mean the stuff falls from the sky in abundance, and yet you're paying tooth and nail for it. Fair game to suppliers mind.




    Ofwat blamed for high water bills by committee of MPs - BBC News

    Ofwat blamed for high water bills by committee of MPs

    carrots being washedThinkstock
    Millions of households in England and Wales are paying too much for their water supply because of poor oversight by Ofwat, says a committee of MPs.

    A report from the Public Accounts Committee (PAC) said the regulator consistently overestimated water companies' costs.

    It said many householders would be "appalled" to learn their water bills could have been smaller.

    Ofwat said it would "carefully consider" the PAC's report.

    Household water bills averaged just under £400 per year last year.

    Windfall

    The committee of MPs said Ofwat regularly overestimated companies' financing and tax costs when setting price caps.

    The PAC said this meant the companies had made windfall gains of at least £1.2bn between them.

    It is asking Ofwat to review the way it assesses companies' cost of debt and tax and report back on how it intends to improve.

    The MPs also said they were worried about customers in areas where water was scarce paying to develop new capacity, despite the possibility that water trading between companies would be brought in in the future.

    Monopoly

    Ofwat came into being to oversee the 18 privately owned companies that supply separate areas with water and sewerage services after the service was privatised in 1989.

    They currently operate as local monopolies but the government has announced plans to free the market for limited competition between suppliers by the end of this parliament in 2020.

    The choice will involve services such as billing and customer services, but not the water supply itself.

    In Scotland, business customers can already choose such suppliers.

    'Priority'

    PAC chairwoman Meg Hillier said: "Ofwat was set up to protect the interests of customers, most of whom have no choice over who supplies their water yet must pay bills typically running to hundreds of pounds.

    "Many householders will therefore be appalled to learn these bills could have been smaller had Ofwat adopted a different approach to setting price limits for water companies.

    "This approach must be reviewed as a priority."

    Ofwat chief executive Cathryn Ross said: "Holding companies to account and protecting customers is at the heart of what we do.

    "That's why we've made sure bills will fall by 5% by 2020. We will carefully consider the thoughts of the PAC."

    She added: "If companies don't step up - we'll step in."

    Consumer Council for Water chief executive Tony Smith said the PAC findings "echo the concerns we have repeatedly raised with Ofwat that it has been too generous to water companies in past price settlements, to the detriment of water customers."

    The consumer group added that Ofwat "needs to... deliver a fair balance between company shareholders and customers".

    Are your water bills over £400, if so why do you think that is? Do you feel Ofwat has overestimated water companies' costs? Let us know about your experiences. Email [email protected] with your stories.

    Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways:

    WhatsApp: +44 7525 900971
    Send pictures/video to [email protected]
    Upload your pictures / video here
    Tweet: @BBC_HaveYourSay
    Send an SMS or MMS to 61124 or +44 7624 800 100
    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    #2
    How does it work in Scotland ?

    Comment


      #3
      Originally posted by FatLazyContractor View Post
      How does it work in Scotland ?
      It's part of your council tax. Supply and waste. No one is recording every pint coming in or leaving the door. There'd be a fecking uproar.
      "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

      Comment


        #4
        Originally posted by FatLazyContractor View Post
        How does it work in Scotland ?
        We pay for their water
        The Chunt of Chunts.

        Comment


          #5
          Originally posted by scooterscot View Post
          It's part of your council tax. Supply and waste. No one is recording every pint coming in or leaving the door. There'd be a fecking uproar.
          What your clan are good at innit?

          BTW, what's the price of Extra virgin Scottish snake oil per gallon these days?

          Comment


            #6
            Originally posted by FatLazyContractor View Post
            What your clan are good at innit?
            Less not forget our other accolades.

            Conan! What is best in life? Crush your enemies. See them driven before you. Hear the lamentations of their women.
            "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

            Comment


              #7
              Originally posted by scooterscot View Post
              Less not forget our other accolades.

              Conan! What is best in life? Crush your enemies. See them driven before you. Hear the lamentations of their women.


              You are so funny.

              Comment


                #8
                My water supplier is Oxfam. They can supply a whole village in Africa with water for only 5 pounds a month

                Comment


                  #9
                  This would never have happened under Labour as the companies wouldn't have been privatised and sold off to either foreign companies, offshore holding companies or just plain big old business who don't give a fig about the consumer but do about their profits and shareholders (right, is there a trolling smiley .) People could actually do something, how about buying shares in the company, attend the general meeting and ask awkward questions to start with?
                  Brexit is having a wee in the middle of the room at a house party because nobody is talking to you, and then complaining about the smell.

                  Comment


                    #10
                    Originally posted by MrMarkyMark View Post
                    We pay for their water
                    You also pay for mine as unfortunately I can't have a compulsory to water meter and am on a capped charge, which is lower than what my water rates would be......
                    "You’re just a bad memory who doesn’t know when to go away" JR

                    Comment

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