Water & Wastewater Treatment

EDITOR'S COMMENT The big freeze is upon us U sually at this time of year, I would be writing about freezing weather, burst pipes, and, in the worst of circumstances (flashback Northern Ireland 2010), water shortages. But now, the freeze is not only about the weather, but about the bills. Severn Trent Water (STW), Yorkshire, Southern and United Utilities (UU) are amongst those water companies that have announced freezes in prices and increases below the rate of inflation. Tariffs and social funds too are slowly becoming more visible across the utility landscape. But as I said last month, the poverty is gruelling. Food bank charity the Trussell Trust says that the number of people sinking deeper into poverty will rise in 2014 and the number using food banks could rise to £1M. Trust chairman Chris Mould said on Sky News, "With earnings rising at less than 1% and social security support capped at 1%, whilst the cost of living is rising three times as fast, the reality for millions of people in the UK will be an even tougher year than the one they've just been through." Hundreds of thousands of the poorest are already facing court action over unmet Council Tax bills and if people can't afford food, heating and Council Tax, then their water bill must be on that list – not least because, thankfully, supply cannot be disconnected. Announcing the utility's half-year results in November, out-going STW chief executive Tony Wray kept a measured tone, saying, "We recognise that many customers are facing higher costs of living, so our aim is to keep bills as low as possible and to help those who struggle to pay with a wide range of social tariffs." However, UU's Steve Mogford was more direct, saying that 'deprivation' among its customers was behind the north-west utility's decision to forgo a price rise already permitted by Ofwat. Speaking to investors at a briefing of the utility's half-yearly results, Mogford denied that the company is bowing to pressure from the government and Ofwat chairman Jonson Cox over prices (see WWTonline.co.uk). With a government pushing out contrived and delusionary propaganda about the causes and consequences of this deprivation, and promising only more stringent measures going forward, the only assurance utilities can have is that customer debt will rise. The sad irony is that customers are revealing genuine concern and willingness to pay for resilient water infrastructure. Strategic investment in asset management, energy and process efficiency, training, monitoring equipment and data systems now might reap much bigger cost savings in the longer term. However, the widening gulf of inequality in the UK also needs to be challenged by the utilities as they make their investment case. nnn Natasha Wiseman, editor Follow WWT on Twitter @wwtweeting January 2014 Water & Wastewater Treatment 3

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