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26 | 26th september - 2nd october 2014 | UtILItY WeeK Customers This week Labour pledges social tariffs across water Water firms accused of 'siphoning off' money for shareholders rather than helping those in need Labour will force water compa- nies to offer social tariffs to their vulnerable customers if it wins the general election next year. In a wide-ranging speech that tackled water companies on affordability and tax, shadow environment secretary Maria Eagle told the Labour party con- ference in Manchester that her party would offer consumers a "new deal". In her keynote speech, Eagle said: "We will reform the industry, creating a national affordability scheme – compulsory for all the water companies – to help people struggling to pay their bills wherever they live in the UK." Currently, water companies have to win the backing of customers before introducing social tariffs – and have in several instances failed to do so. Eagle added that a Labour government would also grant Ofwat more powers to "modify the terms of water company licences". She said the current licence system, which was created 25 years ago when the industry was privatised, has resulted in "increasingly exploitative behaviour by some". The shadow environment secretary attacked the level of profits water companies have made, claiming money was being "siphoned off " to shareholders and private owners. She cited £1.8 billion paid to shareholders, and only £74 million paid in tax in 2013. Eagle said: "Rather than make companies support customers struggling to pay unaffordable bills, David Cameron has allowed [shareholders] to simply siphon money off year aer year aer year." MB energY Ofgem to probe debt practices further Ofgem will deepen its investiga- tion into the way energy firms communicate with customers in debt, following a review earlier this year which found that mis- leading practices still occur. The regulator began an initial investigation into the practice of using alternative branding on customer letters to chase those who failed to pay bills, and found that some of the wording used by suppliers implied that the cases had been passed on to third-party collection agencies, when they had not. Ofgem said it was concerned that customers were being "misled, pressured or scared into making payments they cannot afford". While many of the suppliers have changed their practices, the regulator said it would conduct another review of the firms' com- munications with customers in debt this autumn to ensure that consumers who are struggling to pay their bills are made aware of the repayment options available. It will report its findings early next year, it said. energY Winter bills concern consumers more UK households are more con- cerned about their winter energy bills this year than in 2013, according to a poll commis- sioned by Co-operative Energy. The poll, conducted in August, found that 46 per cent of households are more concerned about being able to afford their winter energy bills than they were in 2013. Group general manager of Co-operative Energy Ramsay Dunning said: "What our latest research shows, is that despite a supposed upturn in the economy, consumers are still fearful of their energy bills in the winter and that this remains a worry for them." energY Less than 1% of meters are 'smart' Less than 1 per cent of domestic properties have fully functioning smart meters, according to fig- ures released by the Department of Energy and Climate Change. The statistics revealed that 402,600 smart meters were oper- ating in "smart mode" – 0.9 per cent of all domestic meters oper- ated by British Gas, EDF Energy, Eon, Npower, Scottish Power, SSE and Utility Warehouse. A total of 491,900 smart meters were installed and in operation by the end of June 2014. The rollout of smart meters is still in its "foundation" stage, with the mass, nationwide roll- out set to begin in autumn 2015. Bucket list: Labour wants to help water-poor I am the customer Laura Cohen "Supplies of electricity look tight this winter" The energy trilemma continues to pose a challenge for the manu- facturing industry in the UK. Cost, security and carbon emissions are particular issues that the government must address as a matter of urgency. Energy prices and climate- related charges make it difficult for energy-intensive industries to be internationally competitive. Indeed, energy bills and taxes can represent 30 to 35 per cent of total production costs for some of our members. it can to help industrial users' bid to come off the system when supply is short. But the com- bination of extended nuclear outages and the National Grid's "last resort" measure brought forward this month show capac- ity margins could soon fall. The government must adopt a more comprehensive strat- egy to ensure energy-intensive industries continue to survive and grow in the UK. Laura Cohen, chief executive, British Ceramic Confederation We welcome the government's temporary freeze on the Carbon Price Floor (CPF) tax from 2016- 20, but it's still a UK-only tax that competitors do not face. CPF compensation is restricted to certain sectors and, because our members are not included, we are pressing for the tax to be withdrawn. We also need to retain EU ETS "carbon leakage" status for our sectors aer 2020 to ensure we can continue to compete on the international stage. Energy security is another issue that must be addressed – supplies of electricity look tight this winter. National Grid is doing what