U.K. Breaks Record For Delinquent Water Bills At Over $3 Billion
By Sara Jerome,
@sarmje
U.K. households have broken their own record for delinquent water bills. They owe more than £2.1 billion, or about $3.16 billion.
Those figures come from Ofwat, the water and sewer regulator in England and Wales, according to The Guardian.
“Britain’s water companies are owed a record £2.1bn by cash-strapped customers, with bad debts adding £21 to the average annual water and sewerage bill. The average water bill is £385 a year, but in some parts of the country it is as high as £482, leaving more than 2.5 million households unable or struggling to pay,” The Guardian reported.
“The proportion of customers contacting National Debtline with issues related to water bills has increased by almost 10 percent in the last five years. The increase in debt over the last five years comes despite below-inflation rises in average bills,” the Belfast Telegraph reported.
Delinquency is tough on the water business, which faces a host of financial challenges including crumbling infrastructure and pressure on revenue as a result of conservation.
It’s also tough on customers. Ofwat is pushing a policy solution for delinquency, asking companies to help customers pay through so-called “social tariffs,” a reduction in bills for those who are struggling to pay.
“Yorkshire Water said its social tariff has cut bills for 10,000 vulnerable customers by an average of £150 a year. But four of the major water companies are yet to introduce social tariffs, while others have been underpromoted,” The Guardian reported.
“The regulator admits water companies enjoyed an easy ride during the financial crisis, with their costs falling as they pushed through price rises. In response, Ofwat has ordered the companies to cut bills by 5 percent in real terms by 2020,” the report said.
Cathryn Ross, Ofwat chief executive, explained her take on these trends, per the Financial Times.
“This important research highlights that while three-quarters of customers think their water services are good value there is a growing problem that more customers are not paying their bill,” she said.
“Some companies need to get better at collecting unpaid bills from those customers who can pay but don’t. Yet this report is clear that many households are feeling the squeeze and need support. While some companies are improving how they respond to these customers, others have to get better at identifying those at risk and helping those who are genuinely struggling,” she continued.
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