THOUSANDS of Thames Water customers are stuck on tariffs which were set in the 90s and bills have jumped by up to 671%.
The water firm, which is in the midst of a multibillion-pound rescue deal, has said bills would rise by 31% from April.
Hundreds of Thames Water customers have seen their bills double[/caption]
Our investigation has discovered that:
- Customers without water meters have seen bills soar due to rates set in the 90s
- Thousands of homes are unable to get a water meter installed, which could lower their bill, because of where they live
- Customers are not being told about a tariff which could save them money
- Customers who ask to get a water meter but can’t get one could be automatically being moved onto a tariff for a three-bedroom home that is up to £93.72 more expensive annually
We have delivered a dossier of cases to Thames Water asking them to urgently investigate.
We have also shared our concerns with the Consumer Council for Water, regulator Ofwat and the Department for Environment, Food & Rural Affairs.
Consumer expert Martyn James said: “I’m deeply concerned about affordability and supporting people who can’t afford this unavoidable, essential service.”
Bills rising by more than expected
The Sun has spoken to scores of people who have seen their bills double, with one customer being hit by a 671% increase.
Many do not have a water meter, so their bills are calculated using a metric known as the rateable value (RV).
The RV of a property is set by the government and is based on the location and size of your home.
The rates were set in 1990 and the values from March 31 of that year are still used to calculate customers’ bills.
The RV varies from house to house, so your bill could be different to your neighbour’s, even if your houses are identical.
Industry regulator Ofwat told The Sun that some customers, particularly those without a water meter whose bills are calculated in this way, may see their payments increase by more than average.
Ofwat added that the RV may not accurately reflect the amount of water they currently use.
In comparison, households with a water meter pay for the exact amount used.
As a result, their bill could be higher or lower than average based on their usage.
Water meter lottery
Installing a water meter is the main way households can reduce their bill.
Customers firstly must ask Thames Water for a water meter appointment and then an engineer will visit to install one – but thousands of homes around the UK are not suitable for them.
Bill rise is ridiculous – we’ll have to cut back
Susan, who lives in a two-bedroom, one-bathroom flat in Lewisham, London, with her husband James, 48, a warehouse operative and 13-year-old sons Callum & Reece.
She said: “It’s worrying. I’m a paramedic so I am not at home very often.
“There is no reason why we would be using a lot of water and we don’t have a bath. It doesn’t make sense.”
Susan called Thames Water to ask why her bill had risen but it couldn’t explain the increase.
Susan said her family will now need to cut back.
“I normally do overtime to keep our head above water. This bill increase will mean we need to tighten our purse strings,” she said.
This is due to a number of reasons, including sharing your water supply with other residents such as in a flat without your own stop cock or living in a home where there isn’t a suitable place to fit one.
Insiders at Thames Water have told this newspaper that around 70% of homes in London cannot get a water meter.
If you live in a home where you cannot get a water meter fitted then you can be moved onto new tariff called the Assessed Household Charge – but this only happens after your home has been assessed by an engineer.
The Sun has found that customers are not being told about this process and therefore cannot access the cheaper tariff.
However, households who are put on the Assessed Household Charge tariff will automatically be moved to the three-bedroom rate, unless they update Thames Water to tell them how many bedrooms they have.
This could mean a household with two bedrooms could be paying around £61.14 extra per year.
Thames Water will not backdate payments so customers need to contact them as soon as possible to check their tariff and update their details.
Experts have slammed the water company for making customers opt-in to find cheaper tariffs.
Martyn James said: “Anything that could reduce bills should absolutely not be conditional on getting a water meter.”
Discounts if you live alone
If you live alone you could also access a single occupier tariff.
However, the vast majority of homes will be on the rate of a three-bedroom home.
The tariff costs £606.58 a year – £93.72 less than for a standard three bed property.
I complained to my MP after bill hike
Natasha Tressillian complained to Thames Water after her water bill rose from £359 a year to £535.
Although Natasha lives alone in a flat in Lewisham, London, she is now spending £45 a month on her bill after it rose by £15 a month.
Thames Water estimates that if Natasha had a water meter her bill would be just £315 a year – £220 less than what she is currently paying.
Natasha, who is in her 30s, said: “Unfortunately a water meter cannot be fitted in my flat.
“That means with a single occupier tariff I’m paying around double what I would otherwise have been charged if a water meter could be fitted.
“It just doesn’t seem fair or reasonable.”
She has complained to Thames Water and her local MP, Janet Daby, and plans to file a formal complaint to the Consumer Council for Water and Ofwat.
Surge in demand for water meters
Bill rises have caused a surge in demand for water meter installations, according to the Consumer Council for Water.
A spokesperson said: “We know water companies have seen a surge in applications for water meters since the bill rises were announced and, in some cases, demand has doubled or even trebled.
“This means in some instances it is taking longer than expected to install water meters at properties where they can be fitted.”
Thames Water aims to install meters within 50 days.
This means that if you apply for an appointment now you could be forced to wait until the end of July for a visit from an engineer.
It also means if you are unable to get a water meter that you could be waiting weeks paying a higher rate before you can access the discounted tariff.
If it takes longer than 12 weeks for a water meter to be installed then you are entitled to compensation.
Act now to get help
Anyone who is worried about their bill should speak to Thames Water, the Consumer Council for Water recommends.
It should be able to explain why your bill has increased and double check if it is accurate.
You can contact Thames Water online or by calling 0800 980 8800.
The phone lines are open from Monday to Friday between 8am and 8pm or on Saturdays between 8am and 6pm.
If you are still concerned then you can complain to the Consumer Council for Water, who can investigate on your behalf.
If your bill has increased and you do not have a water meter then you should book an appointment now.
An engineer may be able to install a water meter at your home, so you will only be billed for what you use.
If they cannot install a meter then you will be moved onto the Assessed Household Charge, which should save you money.
Ofwat suggests that customers whose bills are calculated using the RV may benefit financially by switching to the Assessed Household Charge.
We’ll tighten our belts due to bill increase
ANN Molloy, 52, was shocked to receive a letter from Thames Water to say that her water bill will increase by more than £180 a year from April.
The mother of one, who lives in Ealing, London, received a letter from Thames Water in February to say that her bill will rise from £440 a year to £620.
She said: “We can’t be using that much water. I live with my husband and teenage son in a two bed house with only one bathroom.
“We don’t take baths and only water the garden when it really needs it.”
The family are unable to get a water meter as the pipe that provides their water also supplies the house next door.
To replace the pipe Thames Water would have to rip up the entire ground floor of the family’s home.
Ann asked Thames Water how it calculated her new bill but it was unable to explain the increase.
She also contacted Ealing Council for help but they were unable to explain the bill rise.
The family will now need to cut back in order to afford the bill increase.
Ann said: “It just gets me down. We’re going to have to tighten our belts a bit.
“We will really need to take a look at our finances and our expenses going out.”
If your bill will be lower on the new tariff then Thames Water will switch you straight away.
But if your bill will be higher then it will not move you onto the tariff for a year to give you time to understand how you will be affected.
Thames Water will send you a letter to let you know how much you will pay.
If you live alone then contact Thames Water as soon as you can and ask to be moved onto a Single Occupier Tariff.
If you are unable to pay your bill then you may be able to get financial support from Thames Water.
You can complete an assessment online or call 0800 980 8800 to discuss our options.
To apply you will need the details of any income you receive, your debts, regular bills and outgoings and your Thames Water account number.
A Thames Water spokesperson said: “We offer comprehensive support for customers struggling to pay their bill, rated among the best in the sector.
“We’re already helping around 450,000 customers pay their bills, and by 2030, one in ten households will be in receipt of support, including a discount of 50% on their bill.”
What water bill support is available?
IT’S always worth checking if you qualify for a discount or extra support to help pay your water bill.
Over two million households who qualify to be on discounted social water tariffs aren’t claiming the savings provided, according to the Consumer Council for Water (CCW).
Only 1.3million households are currently issued with a social water tariff – up 19% from the previous year.
And the average household qualifying for the discounted water rates can slash their bills by £160 a year.
Every water company has a social tariff scheme which can help reduce your bills if you’re on a low income and the CCW is calling on customers to take advantage before bills rise in April.
Who’s eligible for help and the level of support offered varies depending on your water company.
Most suppliers also have a pot of money to dish out to thousands of customers who are under pressure from rising costs – and you don’t have to pay it back.
These grants can be worth hundreds of pounds offering a vital lifeline when faced with daunting water bills.
The exact amount you can get depends on where you live and your supplier, as well as your individual circumstances.
Many billpayers across the country could also get help paying off water debts through a little-known scheme and even get the balance written off.
Companies match the payments eligible customers make against the debt on their account to help clear it sooner.
If you’re on a water meter but find it hard to save water as you have a large family or water-dependent medical condition, you may be able to cap your bills through the WaterSure scheme.
Bills are capped at the average amount for your supplier, so the amount you could save will vary.
The Consumer Council for Water estimates that bills are reduced by £307 on average through the scheme.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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