Water companies have been accused of kicking customers while they are down by planning massive bill increases while people are struggling to cope with the recession.
Firms serving the county published their final business plans this week, setting out how much money they plan to spend between 2010-15 and how much more homeowners will have to pay as a result.
Two of the five companies that supply water to Kent’s homes – Sutton and East Surrey Water and South East Water – have been singled out for criticism from the Consumer Council for Water (CCW).
The watchdog was angry after bosses proposed huge above-inflation bill increases of 27 per cent and 23 per cent respectively by the end of the five-year period.
Bills would rise from an average of £154 to £196 for Sutton and East Surrey Water and from £158 to £193 for South East Water.
The water regulator Ofwat will decide in November whether or not to approve the plans.
While Sutton and East Surrey Water covers only a small area in north-east Kent, South East Water serves a much larger number of homes throughout the county as well as in Surrey, Sussex, Hampshire and Berkshire.
David Bland, chairman of the CCW in the South East, said the firms should have thought more about the impact their plans would have on customers.
He added: “Despite pressure from us, some companies’ plans remain out of line with what many of their customers would find acceptable.
“South East Water is proposing a 13 per cent price increase in 2010 and a shift to metering for all customers. While some customers may initially save money by switching to a meter, others will not.
“The proposed combination of high price increases and water meters has the potential to place households under increased financial pressure during an economically stressful period.
“We recognise some price increases may be necessary because of the pressures being put on all water companies to deliver high-quality services for growing populations, but customers will want to see the justification for any proposed price increases and to understand exactly what they will get for the extra money.”
South East Water plans to spend £930 million improving its services over the next five years. This will include maintaining its underground water mains, treatment works and storage stations.
Managing director Paul Butler said the firm had tried to keep its charges as low as possible, including deferring an extra £124m investment until April, 2015.
He added: “In the South East we are faced with serious challenges that require unprecedented, long-term levels of investment from 2010 onwards – not least to ensure we can supply the 25 per cent more homes and 300,000 new customers forecast, with the same secure, high-quality drinking water supply that our existing customers, who are also using more water, currently receive.
“Nevertheless, we have taken into account what our customers and stakeholders have told us are their priorities in terms of levels of service, and how much they are prepared to pay for that service.”
There was also criticism for Folkestone and Dover Water, which has proposed a total increase of 16 per cent despite charging the most of any other company that only provides water (and not sewerage services) in England and Wales.
Customers will see bills go up from an average of £182 to £210 if the plans are approved.
Managing director David Walton said: “We need to balance affordability and investment and our company has done all it can to hold down prices.
“We have been able to defer some capital expenditure and the company itself is accepting a higher level of commercial risk to help hold down bills for customers.
“We only have very limited local water resources and despite the recent months of rain, the fact still remains that we live in one of the driest areas of the country.
“Our plans must ensure we have a water supply system that can both operate effectively in periods of sustained drought and also support a growing population.”
Despite its criticism of three of Kent’s water providers, the CCW gave recognition to Southern Water, which also provides sewerage services, for reducing its proposed average bill rise from 4.5 per cent above inflation per year down to 2.9 per cent.
The total 12 per cent rise by 2015 would raise the average bill from £353 to £397.
However, the CCW said it would prefer to see the company’s planned metering programme spread out over longer than five years to protect vulnerable customers.
Thames Water, which provides water and sewerage to homes in north Kent, has proposed a 17 per cent increase that would see bills rise from £283 to £331.
The CCW said it was concerned about the price hikes but added the company was “moving in the right direction” in trying to keep them down.
POSTED: 11/04/2009 08:00:00
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