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Customers This week Total cost of unpaid water bills tops £2bn Regulator urges water companies to do more to help their struggling customers Ofwat has urged water compa- nies to do more to help custom- ers who are struggling to pay their bills as the amount of outstanding unpaid revenue reaches £2.2 billion. Research by the regulator shows the number of customers at risk of struggling to pay their water bill in England and Wales has remained the same since 2010. However, in the same time there has been a big increase in unpaid bills. The cost associated with unpaid bills is around £21 a year for every household, up from £17 in 2009/10. This rise in debt comes despite below-inflation rises in average bills, and Ofwat's latest price review will result in a further 5 per cent fall, in real terms, by 2020. Ofwat said that although some companies have made progress in establishing more support for vulnerable customers and awareness of support is generally rising, most have not achieved their target to more than double their number of social tariffs to 1.8 million by 2020. Ofwat chief executive Cathryn Ross said: "Some com- panies need to get better at collecting unpaid bills from those customers who can pay but don't. Yet this report is clear that many households need support." Consumer Council for Water senior policy manager Andy White said there is now more assistance available "than ever before", but research shows awareness of assistance schemes remains "far too low". "That's why we're continuing to challenge and work with companies to find ways to boost awareness," he added. LV ENERGY Scheme will protect heat customers The energy industry has launched an independent protection scheme to improve performance, reliability and cus- tomer service for heat customers. The Heat Trust scheme's first members are Eon, SSE Heat Net- works and Metropolitan King's Cross. The Energy Ombudsman will provide an independent complaints-handling service to ensure "fair treatment of customers". Bindi Patel, head of the scheme, said the launch was a "key milestone" for the district heating sector, demonstrating its "commitment to giving custom- ers peace of mind in their heat- ing and hot water supply". Decc said the pipeline of 280 UK heat infrastructure pro- jects currently in development will require up to £2 billion of capital investment over the next 10 years. WATER UU expands Scottish retail market share United Utilities (UU) expanded its share of the Scottish business retail market to reach more than 250 customers at 3,000 sites in 2015. This represents annualised revenue of £18 million, the com- pany said in its half-year results. Aer being awarded a Scot- tish water supply licence in 2012, UU became one of the largest new entrants in the country, second only to Scottish Water subsidiary Business Stream. The firm said: "We remain a leading new entrant, although our selective bidding for busi- ness at attractive margins means we are not solely focusing on growing market share. We also continue to offer and develop value-added services." UU reported a £17 million drop in underlying profit before tax to £205 million. WATER Budget for market opening falls by 8% The estimated budget for the Open Water programme for 2014/15 to 2016/17 has fallen by 8 per cent to £38.2 million. This is £3.6 million less than the estimate of £41.8 million from June 2015, Ofwat has said, but is still significantly higher than the mid-level estimate of £25.3 million set out in 2013. The revision follows a letter to Ofwat from Market Operator Services Ltd, assuring the board it can fulfil its functions. The revised estimate reflects a number of activities that have been completed since the June note was issued, including Ofwat's appointment of a deliv- ery partner and the completion of more detailed planning. Debt is rising despite below-inflation bill hikes I am the customer Dr Laura Cohen "The statement presents a grim outlook for members" George Osborne's Autumn Statement is a mixed bag for manufacturers in the ceramic sectors. The chancellor's failure to provide certainty on energy costs presents a grim outlook for our members. The BCC has been vocal about the effect of the government's actions on energy-intensive industries. The statement has done little to alleviate those concerns. Martin Warner, chief executive of Michelmersh Brick Holdings said: "We have seen through general taxation – we would not want a further tax on industrial users. The CCS announcement, along with Decc's previous announcement, will almost cer- tainly stop coal generation aer 2025 in the UK. This increases demand for gas-fired generation and puts pressure on limited gas storage. Moreover it stifles industrial CCS as a carbon abate- ment technology. Dr Laura Cohen, chief executive, British Ceramic Confederation the recent problems in the steel industry exacerbated by an uncompetitive energy regime. The uncertainty for us as brick makers is over the continuation of full EU ETS carbon leakage status coupled with internation- ally uncompetitive electricity prices, and unlike steel we will not be receiving exemption for UK renewables taxes. This will hamper the ability of our indus- try to invest for the future." We are concerned about what government might be proposing for Renewable Heat Incentive (RHI) reforms. Originally the RHI was going to be paid for by a large tax on gas users but government paid for RHI costs 26 | 4TH - 10TH DECEMBER 2015 | UTILITY WEEK