§ Mr. O'HaraTo ask the Secretary of State for the Environment, Transport and the Regions if he will estimate how many people will financially(a) benefit and (b) be worse off as a result of the introduction of water meters; if he will provide this information (i) for the population as a whole and (ii) for the population over state retirement age; and if he will make a statement. [66382]
§ Mr. MealeThe following estimates are taken from the report, "Incidence Effects of Charging for Domestic Water and Sewerage Services" published by my Department in July 1998. This reported the results of modelling work undertaken on behalf of the Department by Maxwell Stamp Plc. The figures relate to households in England and Wales where there is a choice between measured and unmeasured options. The estimates assume no consequent reduction in consumption or tariff rebalancing. The outcome depends on the tariffs adopted by companies for unmeasured and for measured charging.
(i) Under the current tariffs of water undertakers: 40 per cent. of households would pay less on a measured than they would on an unmeasured basis of charging. 55 per cent. of pensioner households would pay less on a measured than unmeasured basis of charging.
(ii) Assuming a measured basis without standing charge: 44 per cent. of households would pay less on a measured than they would on an unmeasured basis of charging. 63 per cent. of pensioner households would pay less on a measured than unmeasured basis of charging.
The Government's policy, reflected in the Water Industry Bill, is that domestic consumers presently charged on an unmeasured basis should have the option of requesting a measured basis of charging. The Bill would also give new rights to customers paying an unmeasured charge, to continue paying on an unmeasured basis on their present homes where they are using water only for essential household use.