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25 June 2024
Blog
- In the midst of a cost-of-living crisis, we’re working hard to relieve the pressure, where possible, of increased living expenses for our most vulnerable of customers. The latest annual Water Matters survey from Consumer Council for Water (CCW) revealed that trust in water companies was at an all-time low and many customers are worried about the future of their water bill. As part of our proposed business plan from 2025, we’ve said we will support all customers at risk of water poverty. Anglian Water’s Director of Customer and Wholesale Services, Pete Holland, sets out our commitment to customers and the extra measures we’re taking to keep bills affordable and taps running.
Over the last five years, we’ve put forward a customer support package worth £336 million - £70 million this year alone. This has included discounted tariffs, payment plans and breaks and forgiveness schemes. Supporting those who are struggling to pay, as well as keeping bills affordable, is a main priority at Anglian Water.
Providing Extra Care for our customers
If approved by Ofwat, our proposed business plan for the next five years, outlines our biggest ever package of customer support., We know from experience, that to have the most benefit, it requires leveraging innovative thinking and strong partnerships with organisations who know firsthand what help looks like for those who need it. For example, part of our Extra Care service, helps customers identify different benefit funds they may be entitled to, even those that have nothing to do with their water bill.
In just one year we: - Supported 5,238 customers in claiming benefits they were eligible for but not receiving, spanning from water support to various other measures.
- Helped families access a total of £6.8 million in unclaimed benefits, with an average of £1,200 per customer, substantially helping to lift them out of poverty.
- Enabled one customer to receive over £10,000 in backdated support, providing substantial relief from her financial difficulties.
While these figures demonstrate just how powerful targeted support and proactive measures can be, it also highlights just how much additional support is needed. This is why, we’ve outlined a £135 million cost-of-living package in our proposed business plan. This is our biggest ever package of support, larger than any of our peers. It will allow us to give more discounted tariffs on water bills, of up to 50 per cent for eligible customers, as well as more flexibility around temporary payment plans, forgiveness schemes and payment breaks in certain circumstances.
The reason behind your bill increases
Water bills are made up of a few component parts. Firstly, it’s the service you pay for – the pumping, treating, cleaning and maintaining of everything we do to get water from you tap, and take it away again after you flush the loo. It’s funding our people too – engineers, technicians, scientists, and customer services, many of them working 24/7 to do the best job they can for our seven million customers.
But it’s also the investment in securing these services way into the future. From new pipes to pumps, reservoirs and technology, the list goes on. All these things are essential for keeping taps running and drains draining. And with climate change and more people coming to our region than ever before, this work needs to be continued, at pace.
To pay for the cost of new equipment, our shareholders invest the money upfront, and Ofwat agrees how much we five-year back through customers’ bills over the lifetime of whatever we’re building – this can be over 20, 50 or even 100 years. It’s essentially, like a mortgage on a house. Financing this way is how we keep bills affordable and ensure that today’s customers aren’t paying for a benefit they will never see. The amount we can charge customers through their water bills is agreed for a five-year period at a time. - so, bills today were agreed in 2019 as part of our 2020-2025 business plan.
Finally, we must consider other costs like inflation and energy. These are things we have little control over, but they do make up a proportion of your water bill. There’s a full breakdown of all these parts on our website.
Since privatisation in 1989 - ignoring inflation, which distorts what we truly have available to spend on investment – our bills have gone up just 10% in the 30 years, compared to 46% across the wider industry. We work hard to do all we can to keep bills affordable, while also providing additional support to those struggling to pay. Our teams are always on hand to offer support in a way that’s tailored to an individual’s circumstances. Our message is simple – if you’re struggling to pay, please get in touch. The sooner we talk, the sooner we can help.
More information on our customer support packages can be found on our website here.