South West Water, a company serving Devon, Cornwall, and parts of Dorset and Somerset, has initiated a controversial two-year trial involving 3,500 metered households. The trial, set to commence on October 1, 2024, aims to encourage water conservation by implementing higher rates for heavy water consumption during summer months.
Under the new tariff system, participants may face charges up to three times higher for excessive water use in summer, while benefiting from reduced winter bills. This initiative aligns with Ofwat's call for water companies to explore methods of reducing customer usage, supporting the government's goal of decreasing water consumption by 20% by 2038.
However, the trial has sparked criticism from customers who find themselves automatically enrolled without consent. Chris Weatherly, a resident of Falmouth, expressed his frustration:
"Without any consultation with me, I'm being used as a sort of lab rat for their experiment. How can a regulated supplier of a vital public commodity such as water force some of its customers, but not others in the same circumstances, to pay a charge for their water that is different from the standard tariff, without getting the customer's consent?"
The trial comes at a time when South West Water faces scrutiny for recent issues. In 2023, the company was identified as the worst performer in terms of sewage pollution incidents by the Environment Agency. Additionally, it reported a significant 25% increase in water leakage from 2021 to 2022, the highest in the sector.
To address water scarcity concerns, the UK government is promoting various conservation measures. Steve Reed, the Environment Secretary, noted that 94% of the public underestimate their water usage. The average person in England and Wales consumes approximately 140 liters of water daily. The government plans to introduce mandatory water efficiency labels for products and collaborate with regulators and industry on the deployment of smart meters for faster leak detection and repairs.
Other water companies are also exploring similar initiatives. Affinity Water, the largest water-only supplier in the UK, began a two-year trial in Stevenage last year, charging customers more per liter as their usage increased. Northumbrian Water has announced plans to introduce a "water-saving tariff" to reward customers for reducing consumption.
Alan Lovell, chairman of the Environment Agency, emphasized the critical nature of water supply issues:
"We are very worried about the state of the rivers, but if anything, we are even more worried about water resources."
The Environment Agency has warned that the south-east of England, one of the most water-stressed regions in the UK, could face water shortages within 25 years from 2024.
As the trial progresses, it remains to be seen how customers will adapt to the new pricing structure and whether it will effectively contribute to water conservation efforts in the region.