New CCWater boss targets a national social tariff

The new chairman of the Consumer Council for Water (CCWater) is pushing for a national social tariff to be created.

Speaking to Utility Week, Alan Lovell, who only took up his role with the water watchdog in April, said a centrally funded social tariff supporting vulnerable consumers is where “we and the consumers would ideally like [the sector] to go”.

Lovell added that having one publically funded scheme would help to address the shortfall in funding currently faced by the schemes run by the water companies. CCWater research estimates that £400 million would “solve the affordability problem” but the water companies are only able to raise £40 million via levies on their bills for their schemes.

“It’s a tough problem,” he said noting that the water companies can only offer this much because they have to ensure the levies they place onto water bills are acceptable with customers. 

The chairman also stated having one centrally organised scheme would remove the differences between the initiatives run by the various water companies, removing the situation where a single customer may be eligible for support for their water supplier, but not from their wastewater company.

“Where we are at the moment is the third tier of desirability, which is where most of the companies are putting something in place.” The second tier would be company run schemes with “greater consistency” between them, with a national scheme being the ideal solution.

CCWater chief executive Tony Smith added that “there is still work to do on social tariffs” in terms of tying them up and closing the eligibility gaps between the different schemes.

In February, the water companies criticised the “difficult divisions” between the various social tariffs they offer customers , and claimed that there needs to be “more joined up thinking” to improve the sectors’ offering to customers.