Northumbrian WaterA Northumbrian Water spokeswoman said it introduced the new charging system on the recommendation of water regulator Ofwat, and said it was fairer because businesses no longer subsidised the charity rebate. She said the company could advise organisations on diverting rainwater away from drains to reduce bills.
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United UtilitiesBrian Hurd, customer service director at United Utilities, which made £677m profit last year, said: "The aim is not to increase our revenue but to provide a system that better reflects the costs involved."
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Yorkshire WaterYorkshire Water announced profits of £172,000,000 million for 2007/8, and increase of 17% on the previous year. According to Brian Moore, Yorkshire Water charge under £300 for draining an area for which United Utilities charge almost £12,000 (approximately 4,000 per cent more) – how is this disparity justifiable?
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Severn TrentRevenue at the company actually increased by 5.2pc to £814.3m during the six months to September 2008 – with the dividend up 8pc to 26.29p as a result – as Severn Trent raised its prices to offset lower consumption among metered customers. However, £7.2m in fines, the high cost of fuel because of surging oil prices for most of 2008, and a 21pc increase in finance costs – caused by higher interest charges – pushed pre-tax profits lower than 2007 to £137.9m. The company's regulatory charges relate to false leakage data, including a £2m fine and £200,000 costs it was ordered to pay by the Old Bailey for incidents in 2001 and 2002. Severn Trent had previously been fined £35.8m by Ofwat for providing false information and poor customer service. All the matters related to previous management and the company said the issues are now behind it.
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info@dontdrainus.orgHotline 0709 2847134 |
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To date United Utilities, Northumbrian Water, Yorkshire Water and Severn Trent are known to have implemented new charging regimes. Others are being encouraged by Ofwat to adopt the same approach. Brian Moore, writing in the telegraph said, “Here’s a tip for those investors wanting to make rich pickings; a newspaper recently predicted: “[for] straightforward value-for-money, look no further than the utilities, which were remarkable in 2008 for the level of price rises they managed to push through. United Utilities yields almost seven per cent” That United Utilities Plc (“UUP”), which provides some seven million customers in the north west of England with water, is seen by tipsters as an excellent bet is hardly surprising. Along with its fellow utility companies it is a virtual monopoly; able to impose its charges and ensure handsome dividends. Its profits for the years 2005 to 2007 inclusive totalled £974,800,000. In 2007, its shareholders pocketed £1,500,000,000, following the sale of UUP’s electricity interests (in the same year UUP made 1,000 workers redundant, saving £400,000,000). Added to that, UUP’s household customers have been told their bills will rise by 2.7 per cent above inflation every year across the 2010 to 2015 period.”
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