Gary's views

Gary's weekly views

Each week an article by Gary has appeared in the Plympton Plymstock and Ivybridge News in South West Devon. The articles are published here

WATER

Last Friday, to a fanfare of damp trumpets, South West Water unveiled its business plan for the next five years – 2005 to 2010. It sets out what it will do to continue to clean up our beaches, tackle the problem of discoloured water, advance the delightful subject of sewage treatment and unpleasant odours and generally improve its service to customers. It is a fairly ambitious programme.

Most importantly, it tells us what we will have to pay for the privilege. This has all gone off to Ofwat – the independent regulator – and it will make the final decision.

The plan is to increase our water charges over the next five years by 6.2% each year excluding inflation. In other words over 6% per year over inflation. Average bills in 2010 would have risen to £467. In anybody’s book, a significant uplift in a relatively poor area.

To be fair, water price hikes have been reasonable in the past few years, but coming on top of two years walloping from council tax rises, I can see quite a reaction brewing. It remains open, of course, for all of us to switch to water meters – but ultimately the same level of expenditure has got to be met by the same number of people. I am growing more and more concerned about people on fixed incomes, especially pensioners, being able to meet these increases. Unlike other charges there are no rebates available.

We have known for some time that water bills in the south west are far greater per household than anywhere else in the country. The reasons are obvious: so many miles of beaches to clean up to be paid for by a relatively low population.

I am asked to make representations to Ofwat on their proposals. I will of course study them more carefully before I do so. I would also appreciate your views on all this. They can be read on: www.ofwat.gov.uk
I have in the past called for a cross-subsidy from other parts of the country to help reduce our water bills, but this has fallen on deaf ears. I have called for governments of both colours to help out. I am bashing my head against a brick wall.

So the big issue is do we want our water company to make the kind of investment in our water and sewage supplies that their strategic plan suggests? Their proposals are called “Striking the Right Balance.” Have they?

posted by Nigel on Monday, May 24, 2004