By Nicola Pitts, Executive Director, Independent Networks Association
Martin Lewis is right. Help with water bills should not depend on where a customer lives.
His recent evidence to the Public Accounts Committee highlighted a clear problem in the water sector. The current system of water affordability support in England and Wales is too complicated. It is difficult to explain. It also varies too much from one region to another.
This is an issue the Independent Networks Association has raised for some time.
Today, water social tariff schemes are run regionally. Many of these schemes provide important help to customers who are struggling. Water companies have also made significant efforts to support households who need extra help.
But the system itself is still too fragmented.
Customers can face different eligibility rules, different application processes and different levels of support. In practice, this means two households in similar financial circumstances can receive different help with their water bills simply because they live in different areas.
That is not fair. It is also not easy to communicate.
Customers need clear support with water bills
Water is an essential service. Support for customers who cannot afford their bills should be simple, fair and easy to access.
The current regional approach makes this harder.
A customer may need to understand which company serves them, what support that company offers, whether they meet the eligibility rules, and how to apply. The answer can change depending on where they live.
That makes it harder for water companies, charities, advice organisations and local authorities to give clear information to customers.
It also creates a real risk that people miss out on support.
Confusion matters. It can stop eligible customers from applying. It can also make the system feel harder to trust.
A national water social tariff would make the message much clearer: if you are eligible, help is available wherever you live.
Why NAVs see the problem clearly
New Appointments and Variations, known as NAVs, have a particular view of this issue.
NAVs provide last-mile water and wastewater infrastructure for new housing and development sites across England and Wales. They are an important and growing part of the water market.
NAVs now serve more than 200,000 connections. Their role is also increasing as developers, housebuilders and customers make greater use of competition in the new connections market.
NAVs match the commitments made by incumbent water companies in the areas they serve. This includes support for customers who may struggle to pay their bills.
However, many NAVs operate across several incumbent water company regions. This means they have to work with several different water social tariff schemes at the same time.
That gives NAVs a national view of how the current system works in practice.
The conclusion is clear. The system does not give water customers the consistency they need.
A national water social tariff would be fairer
A national water social tariff would help fix this problem.
It would create clearer eligibility rules. It would make support more consistent. It would also make it easier to explain the help available to customers.
This does not mean ignoring the good work already being done by water companies. Many companies have expanded their affordability support and made real efforts to help customers.
That should be recognised.
The question is whether the current structure is the right one.
At the moment, support can vary too much by region. A national water social tariff would help ensure that fairness does not depend on geography.
It would also make it easier to understand where support is working and where more help is needed. A national framework would give Government, regulators and companies a clearer picture of water affordability pressures across England and Wales.
Reform should build on existing support
A national scheme should not reduce the help available to customers who already benefit from strong local schemes.
The aim should be to build on existing support, not level it down.
A better system would bring greater consistency while protecting customers who already receive help. It would also make the system easier for customers to understand and easier for companies to manage.
For NAVs, this matters because they are serving more customers across more parts of the country. They are ready to play their part in supporting households.
But the framework needs to be clear, fair and consistent.
Government should act
Martin Lewis’ intervention is important because it puts the customer first.
A system that cannot be easily explained to customers is unlikely to be working as well as it should.
Water affordability support should be fair, accessible and consistent. Customers should not have to navigate a postcode lottery to get help with an essential service.
The case for a national water social tariff is now stronger than ever.
Government should act.
