Tap Water Rates Get Political In U.K.

The price of tap water has been a lightning rod for controversy in the U.K. after Prime Minister David Cameron signaled plans to get tougher with water companies. 

Cameron "ordered ministers to examine how they could force water companies to cut household bills," The Guardian reported. 

In the U.K., the rising cost of tap water is part of a larger political issue: family bills. "Household bills have become the focus of a fierce political battle over how to tackle a fall in living standards ahead of the general election due in 2015," The Wall Street Journal reported. 

The government is reaching out to water utilities to try to keep bills from rising. "Environment Secretary Owen Paterson had written to the country's major water firms stressing the tough times that households are facing," the Journal said. 

"It is essential that unexpectedly high profits for companies are translated into real and tangible benefits for customers through higher investment or lower bills," the letter said. 

Ofwat, the sector regulator for England and Wales, "has asked the firms to consider whether they need to apply the full price increases next year that they are allowed."

Rising utility bills became more political when the opposition party made it an election issue, according to Reuters. "The opposition Labour party has sought to reflect public anger on the issue as part of a shift in its line of attack to real incomes, which have not yet risen for most Britons despite revived economic growth. Labour has said it would freeze power prices for 20 months if it wins a general election due in 2015," the report said. 

Regulators blocked the nation's largest water utility from hiking its rates up 8 percent last week. 

“Ofwat said they were not convinced of the hike on household bills, which was proposed by the privately-owned company Thames Water," the International Business Times reported. 

"We said we would challenge Thames' application, in the interests of customers. We did just that and on the evidence provided we are not convinced that an extra bill increase is justified," Ofwat chief regulation officer Sonia Brown said in the Times piece. 

Thames Water serves 14 million customers, the report said. 

In the U.K., customers are not able to switch water providers. Their only choice is "the sole provider for their area," the Guardian said. Regulators have the power to "block excessive price rises."

The price of water is going up in the U.K. 

"Water bills have risen by more than 60 percent over the past decade, as above-inflation increases have been allowed to pay for environmental improvements and replace aging pipes," The Guardian said. 

For previous reporting on the U.K. water industry on Water Online, click here. 

Want to publish your opinion?
Contact us to become part of our Editorial Community.