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Ofwat calls for innovation with water bills and charging

  • Ofwat calls for innovation with water bills and charging

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H2o Building Services
H2O Building Services is one of the UK’s leading providers of commercial water management and consultancy services. With unparalleled expertise in carrying out water audits, we specialise in reducing water saving businesses money on their water bills

Industry regulator Ofwat has issued a call for water companies around the UK to try out more innovative ways of charging their customers to help make bills more affordable and to encourage more responsible and sustainable water usage.

The watchdog has also just confirmed its latest good practice principles for trialling different ways for bills to be paid. At the moment, these bills are set on a flat standard amount based on the property type, or on a flat rate based on how much water is used.

But under the updated rules, trials could include seasonal charging to reduce water bills in the winter months, reducing bills for properties that have permeable driveways and water butts in place to help reduce flooding and pollution risks.

In addition, charges could be brought in to support messages about water use reduction at times when fewer resources are available.

Suppliers appear to already be making inroads where these trials are concerned, such as Affinity Water, which provides water supplies across the south-east of England. The company intends to be the first to bring in a charging trial under these new Ofwat rules.

It’s expected to go live later in the year, with approximately 1,5000 pre-selected domestic customers charged a cheaper rate for using a lower amount of water, with prices rising progressively the more water is used. The outcome is expected to be that at least two out of three of these properties will pay less for water supplies than they do at the moment.

Ofwat CEO David Black said: “We know that an increasing number of customers are struggling with cost of living pressures. At the same time, water resources are being impacted by climate change which poses significant long-term challenges to river water health and security of water supply.

“While charging is only one approach, companies need to use every tool at their disposal to support affordability, encourage us all to use water wisely and reduce our impact on the environment.

“We are encouraged that Affinity Water is leading the way in developing ways to reduce bills for customers while protecting our precious water resources. We want to see more companies seeking out and implementing innovative solutions.”

Other plans featured in Ofwat’s good practice principles include robust trial design and evaluation and effective customer engagement and support, such as through addressing household leakage rates.

From a business perspective, one of the best ways to go about saving money on your water bill is to consider comparing business water suppliers.

There are various benefits associated with doing so, everything from realising cost savings through better tariffs with a different retailer to better customer service, value-added services and working with a supplier that has specific experience of dealing with businesses in your particular industry or sector. 

In addition during the process of switching water supplier your business will be encouraged to be more sustainable, a water audit report will identify areas where your business can reduce water usage and inturn reduce waste water discharge great for business and our environment!

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