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Utility Week 27th March 2020

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Customers UTILITY WEEK | 27TH MARCH - 2ND APRIL 2020 | 25 Cambridge Water, part of South Staffs Water, has asked its cus- tomers to lower consumption by 15 litres of water each a day. The water-saving campaign – Pledge15 – offers advice for mak- ing small changes to daily habits combined with visual messaging that shows people how much water different tasks use. The campaign raises the profile of the water efficiency WATER Cambridge asks residents to lower PCC by 15 litres each day message that all households, businesses and industry must use water more wisely and understand there is not an unending supply. Utility Week's Mind the Tap campaign calls on all water companies and stakeholders to unite under a nationwide campaign for water efficiency and examines how messages could be better communicated to help people use less. The company appealed to customers to make changes to protect local waterways such as chalk streams, particularly in summer months. As part of its PR19 final determination, the company has committed to cut leakage by 15 per cent by 2025. It must also secure a 1 per cent and 6.3 per cent reduction in per capita This week Customers 'must not pay for inefficiencies' Competition authority is told water firms cannot ask customers to bankroll 'previous shortcomings' Ofwat has reminded companies that "customers shouldn't pay for inefficiencies" as it made its submission to the Competitions and Markets Authority (CMA) against the four water companies that referred the final determina- tion of their business plans. The regulatory body for the water sector defended the out- come of the price review, saying its message remained clear and consistent in asking companies to find greater efficiencies and improve performance. Ofwat noted that "an important principle in the price review is that customers shouldn't pay for inefficiency or to top-up funds to cover companies' previous shortcom- ings and help them catch up with others". Anglian, Bristol, Northumbrian and Yorkshire Water each requested an appeal to the CMA in February a˜er the publication of the final determinations in December. Ofwat said its final determinations addressed the challenges of climate change and population growth as well as tightening up financial regulation to ensure customers are prioritised. The regulator said its message was important to tackle "the shortcomings of the past", saying these included concerns that, in some cases, "more attention has been paid to taking money out for shareholders than delivering for customers". It said it would set out how its detailed analysis of operational best practice, companies' historic perfor- mance and business plans, and evidence of returns in capital markets show the companies' stance is unjustified. The CMA said an administrative timetable would be published shortly outlining the key milestones and proposed timeframe for the completion of the redetermi- nations. RW WATER MOSL proposes payment breaks MOSL, the market operator for the non-domestic water sector, has proposed waiving charges to help retailers cope with the impact of the coronavirus. To alleviate financial pres- sures, MOSL and Ofwat recom- mended a series of code changes to "pain share" between custom- ers, retailers and wholesalers during the coronavirus outbreak. A joint open letter from Sarah McMath, head of MOSL, and Emma Kelso, head of markets and enforcement at Ofwat, said the whole water sector must step up and do "whatever is neces- sary" to keep services running. MOSL set out proposals to protect customers, waive cur- rent performance charges and explore changes that could offer relief for late payments. Following discussions with the Department for Environ- ment, Food and Rural Affairs and Ofwat, MOSL said it wanted to see the performance charges collected in 2019/20 used for re- distribution among trading par- ties, not used for other projects. Further actions included removing penalties in instances that meters cannot safely be read. They said meter reading, which is certain to decrease to minimise non-essential contact, could continue where social distancing was adhered to. Changing codes to mark premises as "vacant" where customers have been temporar- ily forced to close or allowing delayed payment could ease cash flow problems for retailers during closures or if demand is lower. ENERGY Prepay customers face top-up dilemma Sir Ed Davey has warned the government and Ofgem that customers who use prepayment meters and have caught the coronavirus could be forced to leave self-isolation unless they receive more leeway when it comes to paying their bills. The acting leader of the Liberal Democrats has written to business and energy secretary Alok Sharma to raise concerns about customers who live on their own relying on prepaid electricity and gas meters. The letter has been copied to Ofgem chief executive Jonathan Brearley. He says an "untold number" of the four million plus UK households dependent on pre- paid electricity and gas meters have no option to top up online and must visit shops to top up their prepayment cards or keys. Davey said: "I am calling on ministers and leaders in the sector to introduce whatever flexibility is needed to prevent any customers being cut off and to ensure no one is le˜ without heat or light in the face of this unprecedented pandemic. Gov- ernment must step in to protect those who are vulnerable. It must take decisive action now." Companies must 'deliver for customers' consumption (PCC) by 2024/25 in the South Staffs and Cambridge regions respectively. The company has also been tasked with finding a 29 per cent reduction in the length of water supply interruptions – to five minutes – by 2024/25. The campaign will run on social media with water-saving devices to be won for the most popular pledge posts.

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