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31st July 2013, 06:35
http://www.dailymail.co.uk/news/article-2334134/Pensioners-forced-ration-water-use--companies-make-600million-profits-years-alone.html
Pensioners forced to ration water use… as companies make £600million profits in last two years alone
By DANIEL MARTIN and SEAN POULTER
PUBLISHED: 00:45, 1 June 2013 | UPDATED: 00:45, 1 June 2013
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Water bills are becoming so high some people are being forced to ration their water usage to cut costs
Water bills are becoming unaffordable ‘for a large number of people’ because water companies have cashed in so much since privatisation, a Commons report has found.
Prices have soared by almost 50 per cent in real terms since services were privatised by Margaret Thatcher 25 years ago, with two companies hiking charges by more than 60 per cent.
In contrast, in the last two years alone, the water firms have made excess profits of more than £600million.
The windfall profits are thanks to flaws in the industry’s complex price-setting regime, according to the official customer watchdog.
Pensioners now spend £1 out of every £50 on their water bills alone - putting huge pressure on their finances and in many cases forcing them to ration their use of water.
The report by the House of Commons Library found that for the first time, almost a quarter of all households now spend 3 per cent of their income on water and sewerage bills. Some 11 per cent spend more than 5 per cent on water.
Average bills are now £375 a year and as high as £499 in the south west. Customers in the north west have seen the largest rise since privatisation - up 64 per cent in real terms.
And water bills are likely to increase in future as companies are forced to adhere to new environmental standards, the report warned.
It concluded: ‘Current water bills might not be affordable for a large number of people. Water affordability problems have grown with real-term increases in water bills of almost 50 per cent since privatisation in 1989.
‘Households are more at risk of water affordability issues when they are on a low income and spend over 3 per cent of their income on water and sewerage bills.
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Read more: http://www.dailymail.co.uk/news/article-2334134/Pensioners-forced-ration-water-use--companies-make-600million-profits-years-alone.html#ixzz2abPFx8gg
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Pensioners forced to ration water use… as companies make £600million profits in last two years alone
By DANIEL MARTIN and SEAN POULTER
PUBLISHED: 00:45, 1 June 2013 | UPDATED: 00:45, 1 June 2013
345 shares 227 View
comments
Water bills are becoming so high some people are being forced to ration their water usage to cut costs
Water bills are becoming unaffordable ‘for a large number of people’ because water companies have cashed in so much since privatisation, a Commons report has found.
Prices have soared by almost 50 per cent in real terms since services were privatised by Margaret Thatcher 25 years ago, with two companies hiking charges by more than 60 per cent.
In contrast, in the last two years alone, the water firms have made excess profits of more than £600million.
The windfall profits are thanks to flaws in the industry’s complex price-setting regime, according to the official customer watchdog.
Pensioners now spend £1 out of every £50 on their water bills alone - putting huge pressure on their finances and in many cases forcing them to ration their use of water.
The report by the House of Commons Library found that for the first time, almost a quarter of all households now spend 3 per cent of their income on water and sewerage bills. Some 11 per cent spend more than 5 per cent on water.
Average bills are now £375 a year and as high as £499 in the south west. Customers in the north west have seen the largest rise since privatisation - up 64 per cent in real terms.
And water bills are likely to increase in future as companies are forced to adhere to new environmental standards, the report warned.
It concluded: ‘Current water bills might not be affordable for a large number of people. Water affordability problems have grown with real-term increases in water bills of almost 50 per cent since privatisation in 1989.
‘Households are more at risk of water affordability issues when they are on a low income and spend over 3 per cent of their income on water and sewerage bills.
More...
Read more: http://www.dailymail.co.uk/news/article-2334134/Pensioners-forced-ration-water-use--companies-make-600million-profits-years-alone.html#ixzz2abPFx8gg
Follow us: @MailOnline on Twitter | DailyMail on Facebook