Residents hit out over water price hike move
RENTERS have hit out at a rise in wat e r ch a r g e s proposed to come into force next year. Prices are set to increase by around two per cent above the inflation rate from 2021 over the next six years.
The Water Industry Commission for Scotland ( WICS), who sets water charges, insist the potential hike will allow Scottish Water to deliver £ 4.5 billion in investment, an increase of more than £ 1bn from the investment allowed in the current 2015- 21 regulatory period.
However, the Scottish Tenants Association, which held a small protest outside in George Square last week, says the hike is coming at the wrong time when families are already feeling the financial constraints caused by coronavirus.
Sean Clerkin, from the group, said: “This is unacceptable and really begs the question why they are unfairly wanting to increase water charges.
“They’re trying to justify it by saying they have to improve water and sewerage infrastructure and become net zero in carbon emissions.
“These arguments are weak in that improvements to our water and sewerage infrastructure have been ongoing for a number of years and the planned reduction to net zero carbon emissions will be far less costly than previously thought.”
Citizen’s Advice Scotland ( CAS) echoed the concerns, but insisted Scottish Government’s intimation of protection from price hikes for society’s most vulnerable was a “win”.
CAS water policy manager, Gail Walker, said: “As well as targeting financial relief for low- income households,
we want to see a range of measures to help prevent people falling into water debt and helping those in debt to recover.
“These include making sure repayments for those in water debt will not cause financial hardship as well as clearer communication that people in receipt of Council Tax Reduction are still liable to pay at least 75 per cent of their water charges.
“Given that more households are likely to be in receipt of Council Tax Reduction as a result of the coronavirus pandemic, it’s more important than ever that people are made aware of their ongoing liability to pay for water charges to avoid falling into debt.
“The Scottish Government has intimated an intention to raise the Water Charges Reduction Scheme from 25 per cent to 35 per cent. This will be available to all those that qualify for CTR. For CAS this is a significant win as we have been pushing for more financial support for low income households for some time.”
The WICS insist the rise will be equivalent to around an extra £ 9 a year in real terms on the average household bill.
The consultation on its draft determination is still ongoing until November 19.
A spokesman said: “The pandemic has underlined the importance of a reliable,
high- quality water system. There is no indication that the costs of climate change are less than previously thought. What is clear, however, is that failing to invest more at the current time risks declining standards, failing to tackle climate change and ultimately higher bills.
“The Scottish Government sets the Principles of Charging for the industry. It has indicated that it proposes to increase the discount currently available to households and extend eligibility to those who receive both Council Tax Reduction and some other form of Council Tax discount. Our draft determination notes that customers in Scotland continue to benefit from public ownership of Scottish Water and the Scottish Government has made it clear that there are no plans to change the ownership model.”
A spokesman for the Scottish Government said: “Ministers fully understand there are pressures on household budgets and appreciate that as an essential service, water and sewage charges must be affordable ... the Scottish Government has already announced that it will be bringing forward further measures to protect those least able to afford water charges in 2021- 27 and we will continue to work with stakeholders to ensure charges remain affordable.”