Watchdog enters water debate

A CONSUMER watchdog was waded into the row over water price hikes by demanding regulator Ofwat does more to help poorer households.

Leading water companies are set to refer Ofwat to the Competition Commission if it proceeds with its plan to only allow price increases of between 15% and 20% tomorrow.

The companies argue that prices need to rise further to fund infrastructure upgrades, but the National Consumer Council has argued people in financial vulnerable households can‘t afford even minimal increases.

NCC senior water policy experts Maxine Holdworth said: ?With average water charges forecast to rise by around 15%, the burden of water bills for people on fixed incomes like pensions and benefits is increasing out of all proportion to their ability to pay.‘

The organisation claims customers on unmetered supplies will face the greatest hikes in their bills. It said customers in the South West, already the area of the country with the most expensive bills, will see their bills rise by a third by 2010.

The Government is currently reviewing measures to help low-income households pay for water, but the NCC claims it will just ?tinker‘ with the current policy.

It wants the Government, Ofwat and water suppliers to work together to ensure the poorest households have help with paying their bills.

Holdsworth said: ?The hopelessly ineffective vulnerable groups scheme, which helps only 2% of eligible people, should be scrapped and replaced with meaningful and workable measures that prevent people having to struggle to pay for the basic essential.‘

A spokeswoman for Ofwat said: ?Both the Government and ourselves are concerned about financially vulnerable households. Price rises of any amount make it more difficult to people to pay and we are keen to try and help those people find a solution.‘