Customers of water firms facing 'double charge' as Ofwat lets them rack up extra bills to fund sewage fixes.
In a move that campaigners have dubbed "unlawful", Ofwat has allowed water companies to bill customers not once, but twice for improvements aimed at tackling record levels of sewage pollution in the UK. The scheme, known as PR24, allows firms to charge customers an additional amount to make up for past underinvestment in infrastructure - a practice that some say amounts to "double dipping".
According to River Action, a charity campaigning on issues related to water and environment, Ofwat's decision has resulted in huge bill rises for households affected by the worst-performing companies. Thames Water customers are facing a 35% hike, with average bills increasing from £436 to £588, while Southern Water customers are being charged an astonishing 53% more, taking their annual bill from £420 to £642.
Critics argue that customers should only pay for new infrastructure investment, not the costs of bringing firms into compliance with environmental regulations. River Action is using the case of Windermere, where a similar charge was imposed on residents, as evidence in its claim that Ofwat's approach amounts to an "unlawful" double charge.
"We believe it's fundamental that customers should not be made to pay twice for water companies' past failures to invest in improvements," said Emma Dearnaley of River Action. "But we're concerned that Ofwat's approach means customers could be paying again, while degraded infrastructure continues to spew pollution into our rivers and lakes."
The case is set to come before a Manchester civil justice centre, with lawyers representing River Action arguing that Ofwat has failed to ensure that water bills are used for essential infrastructure upgrades. The charity claims that the billions approved by Ofwat are being siphoned off instead, leaving customers with another bill to foot.
Ofwat, however, maintains that its approach is fair and justified. "We reject River Action's claims," said an Ofwat spokesperson. "The PR24 process carefully scrutinised business plans to ensure that customers were getting fair value and investment was justified." But the charity disputes this assertion, arguing that the scheme amounts to a "brazen attempt" by water companies to extract extra revenue from customers.
As the case unfolds, it remains to be seen whether Ofwat's approach will be deemed unlawful. One thing is certain, however: thousands of households across the country are facing significant increases in their water bills, and campaigners are determined to fight for fairness and transparency.
In a move that campaigners have dubbed "unlawful", Ofwat has allowed water companies to bill customers not once, but twice for improvements aimed at tackling record levels of sewage pollution in the UK. The scheme, known as PR24, allows firms to charge customers an additional amount to make up for past underinvestment in infrastructure - a practice that some say amounts to "double dipping".
According to River Action, a charity campaigning on issues related to water and environment, Ofwat's decision has resulted in huge bill rises for households affected by the worst-performing companies. Thames Water customers are facing a 35% hike, with average bills increasing from £436 to £588, while Southern Water customers are being charged an astonishing 53% more, taking their annual bill from £420 to £642.
Critics argue that customers should only pay for new infrastructure investment, not the costs of bringing firms into compliance with environmental regulations. River Action is using the case of Windermere, where a similar charge was imposed on residents, as evidence in its claim that Ofwat's approach amounts to an "unlawful" double charge.
"We believe it's fundamental that customers should not be made to pay twice for water companies' past failures to invest in improvements," said Emma Dearnaley of River Action. "But we're concerned that Ofwat's approach means customers could be paying again, while degraded infrastructure continues to spew pollution into our rivers and lakes."
The case is set to come before a Manchester civil justice centre, with lawyers representing River Action arguing that Ofwat has failed to ensure that water bills are used for essential infrastructure upgrades. The charity claims that the billions approved by Ofwat are being siphoned off instead, leaving customers with another bill to foot.
Ofwat, however, maintains that its approach is fair and justified. "We reject River Action's claims," said an Ofwat spokesperson. "The PR24 process carefully scrutinised business plans to ensure that customers were getting fair value and investment was justified." But the charity disputes this assertion, arguing that the scheme amounts to a "brazen attempt" by water companies to extract extra revenue from customers.
As the case unfolds, it remains to be seen whether Ofwat's approach will be deemed unlawful. One thing is certain, however: thousands of households across the country are facing significant increases in their water bills, and campaigners are determined to fight for fairness and transparency.
... customers gotta pay for sewage fixes TWICE? That just doesn't seem right to me 
. I mean, I get that we need better infrastructure and all that, but should we be paying for it twice over? It sounds like companies are kinda "double dipping" 
.
No thanks! I think it's time someone spoke out against this practice and fought for fairness 
.
I'm all for transparency and accountability in government, but this just feels like a big ol' mess 
I'm so mad about this! 
Water companies are basically stealing from customers 
. They're allowed to charge us TWICE 
for the same thing! It's not right 
. If they can't afford to fix their own infrastructure, why should we pay twice? 
I'm with River Action on this one 
. We shouldn't be footing the bill for water companies' mistakes 
.
That's like, taking it to the max 
.
and I'm rooting for River Action 
.
. its all about fairness and transparency, and ofwat seems to be lacking on that front 
. the fact that customers are facing huge bill increases is not only a burden but also a warning sign - what else is being "fixed" behind closed doors? 
River Action iz on it tho, theyre fightin 4 fairness & transparency. u should to @ them too, dont wanna b left in the dark 