"Thousands of households with large gardens, swimming pools and hot tubs could face significantly higher water bills under controversial new pricing trials being prepared by water companies across England. The schemes would introduce tiered charging systems under which customers pay progressively more as water consumption rises, with critics warning the plans amount to "social engineering" and a stealth tax on family living."
"Under the proposed "block pricing" model, households would receive an initial allocation of water before tariffs rise in stages as usage increases. Officials are also examining the creation of a fourth pricing tier aimed specifically at homes with exceptionally high consumption. Affinity Water is preparing what could become the largest trial of its kind, potentially affecting up to 14,000 households across the Home Counties later this year."
"One proposal would allow households to prepay for a fixed amount of water at a discounted rate, while usage beyond the allowance would incur higher charges. Another scheme would reward households that use less water than expected with reduced tariffs. Rather than relying on regional averages, smart meter data would be used to create personalised consumption baselines for individual households."
"The company said broader postcode averages risked unfairly penalising larger families and confirmed households would be able to opt out of the schemes in certain circumstances. Severn Trent has already launched its own rising block tariff trial affecting 5,000 households, while Anglian Water recently began a four-year pilot focused on non-household customers."
Water companies across England are preparing controversial pricing trials that use tiered charging to raise bills as consumption increases. Affinity Water plans a large block pricing trial that could involve up to 14,000 households, expanding a smaller pilot. Under block pricing, households receive an initial water allocation before tariffs rise in stages, and a possible fourth tier would target exceptionally high usage. Portsmouth Water is developing smart meter trials that include discounted prepayment for a fixed amount and reduced tariffs for households that use less than expected, using personalised consumption baselines rather than postcode averages. Severn Trent has launched a rising block tariff trial for 5,000 households, and Anglian Water has piloted similar approaches for non-household customers. Households may be able to opt out in certain circumstances.
Read at London Business News | Londonlovesbusiness.com
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