Utility Week

UTILITY WEEK | MARCH 2023 | 25 Water through their willingness to pay research. That central funding element is really key to ensuring people have consistent support." "That was the fundamental point the independent working group couldn't nd a way through," Clancy says. "Which led to CCW's recommendation in the rst place." She says a• ordability support without a shared nancial pot would be "a body blow to social tari• s in water". Cook echoes this and says the principles of fairness and consistency at the heart of the project would be in jeopardy without a centralised fund. "I struggle to see how we can achieve it with a regional approach," Cook tells Util- ity Week. "We have a regional approach now and we haven't achieved fairness and consistency." She says the NEA is extremely disap- pointed with the change in direction aƒ er initial positive reception to the proposal to end the postcode lottery. In the energy sector, the idea of a social tari• is gathering pace and support aƒ er being proposed by Ofgem. Balancing investment with a ordability Clancy and Cook both stress that their organisations will continue to engage con- structively on the important matter of water poverty, but Clancy points out that it is "very hard to nd a way through and make the pro- gress we need". Since the recommendation was made to develop a tari• by 2025, hardship levels have risen and more billpayers face water poverty, while the impact on bills of nancing envi- ronmental improvement initiatives – such as the Water Industry National Environment Programme (WINEP) – look set to be many times that of previous programmes. "There's a real risk we are putting in dan- ger the environmental improvements the sector so desperately needs because we don't have that consistent a• ordability support in place," Clancy warns. "If bills go up by £200, for a family living in an area of high depri- vation and support is not there, I don't know what's going to happen." In terms of policy development, Co• ey told the Lords committee that CCW would guide Defra, but added it was not her "top priority". Given the urgency of investment needed, and the Treasury's position that it will not supplement company spending, Co• ey was asked by the committee why it was not a pri- ority to provide a safety net for low income billpayers through policy. She said there already was a safety net through regional support o• ers and added that the depart- ment was "still in policy development" on plans for the future. Committed to ending water poverty Aƒ er the initial reception of CCW's rec- ommendation, a development group was formed to progress the tari• . It has been meeting for over a year, in which time it car- ried out modelling for what the tari• could look like and agreed a set of principles the scheme must meet to satisfy aspects of fair- ness and consistency. "We have a group of committed and dedi- cated people working towards the goal of ending water poverty who all want that work to not be wasted," Cook says. Defra made a clear commitment to con- sult, which it has not stepped away from. However, CCW fears the work may be less impactful than previously hoped. "It would be tragic if that consultation was inadequate or not meaningful given where the country is with water poverty and the spectre of rising bills in the future," Clancy says. The consumer group will work construc- tively with whatever the promised consulta- tion is on, Clancy says. "But we are surprised and bitterly disappointed at where we nd ourselves at this time." The organisation will ramp-up its cam- paigning with a wide range of stakeholders to make sure its voice is heard on behalf of nancially vulnerable consumers. This will include working to get the tari• on other par- ties' manifestos in the future. "Our policy will not change. We strongly believe this is the right way forward and we will be working with partners to push this very clearly and passionately up the agenda." Defra says: "We are working with CCW, Ofwat, charities and water companies to explore the recommendations from CCW's A• ordability Review, to further support households who are struggling to pay their water bills. "This includes exploring options to improve our existing social tari• arrange- ments and our intention is to implement any amendments to align with the start of the next price review – 1 April 2025. "Government expects all companies to make sure customers are aware of the schemes available if they need support to pay their bills. That includes bill discount schemes, payment holidays, adjusting pay- ment plans and getting support for custom- ers on managing their personal nances." Ruth Williams, water correspondent "It's a matter of social policy and should be mandated by government, not something decided by boardrooms," Emma Clancy, chief executive, CCW "It's a matter of social policy and should be mandated by government, not something

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