§ Dr. TongeTo ask the Secretary of State for the Environment, Transport and the Regions what conditions will be imposed on water consumers who wish to change to a tariff-based system of charging. [64542]
§ Mr. MealeUnder present arrangements, the tariff and method of calculation of water charges and the choices offered to consumers are at the discretion of water undertakers.
The Government propose to introduce increased choice and consumer protection for domestic water customers through the Water Industry Bill, now in Committee. The Bill proposes to give all household consumers the right to change to a measured basis of charging free of initial costs for meter installation. The only restriction on this right would be in cases where it was not reasonably practicable or would involve unreasonable expense. As a further
44Wimportant consumer protection, customers exercising their new right to opt for a meter would have the option of reverting to unmeasured charging after a year.
The Bill also proposes to introduce a new right for consumers currently paying on an unmeasured basis to stay on an unmeasured charge in their present homes, except where they are consuming water for non-essential purposes.
It is proposed to use new powers under the Bill to protect vulnerable customers with high essential water use from measured bills that are higher than average.
The Government also wish to see water companies go beyond these new legal requirements to develop tariffs that offer greater customer choice and have regard both to social and environmental objectives. It will be for companies to introduce new tariffs, which would, under the provisions of the Bill, require the approval of the Director General of Water Services.