UK customers will be charged more for their water during heatwaves under a new scheme being trialled by 15 companies across the country. The pilot surge pricing trials, set to be introduced by firms including Anglian Water and Thames Water will either see customers charged in line with their water usage or depending on the time of year. A scheme designed on the latter model, of fixed seasonal tariffs, has been planned by Anglian Water, according to reports, in a bid to “reduce discretionary water usage” during hotter months.
Meanwhile, a “rising block” trial set to be launched by Thames Water will see customers charged more depending on how much water they use – with prices doubling if they consume 685 litres a day, the equivalent of using a hose for 40 minutes. Water regular Ofwat said in a report last year that surge pricing could help to cut water usage during periods of high demand, adding that both schemes could cause a spike in costs “when water is scarce” and eventually be rolled out on a larger, cross-country scale.
It comes after two water companies imposed a hosepipe ban on customers this week amid ongoing heatwave conditions and record-breaking water demand in England.
South East Water said customers in Kent and Sussex would be fined up to £1,000 for ignoring the ban, which will remain in force until July 18, while Yorkshire Water implemented similar measures on Friday to protect its supply.
The surge pricing trial will tackle the rising consumption of water by households right across the country, with many using up to double the normal amount during periods of hot weather, The Telegraph reports.
Alongside Thames Water, Severn Trent Water will charge customers less for the initial 5,000 litres of water used a month, the same costs as currently charged for the following 5,000 and a higher rate for usage above 10,000 litres.
The government has supported a nationwide roll-out of smart water meters, which measure usage and send readings and data to water companies.
A report commissioned by Ofwat and produced by consultancy firm Baringa recommended last year that research should be undertaken into smart meter tariffs that “charge customers more … during hosepipe bans”.
It said firms should look into introducing “time of use tariffs that charge customers more for using water when it is more scarce – in the summer months or during hosepipe bans, for example – and less at other times”.
However, Reform UK MP Richard Tice warned that companies risked imposing “Big Brother” style policies by keeping watch over individual households’ water usage.
“Once again, Big Brother is watching you,” the deputy party leader said. “This would be a Chinese-style social credit system. The answer is to fix our water industry. There is no reason to ever have water shortages on an island nation beset by rain.”
A spokesperson for Ofwat said: “We are working with partners to consider the recommendations made by Baringa as we develop our approach to the water efficiency fund.”
Yorkshire Water said smart meters “cannot be used to track hosepipe usage” but instead reveal “how much customers are using, which can help detect water leaks, saving water and saving customers who are on a meter money”.
A representative for Water UK added: “Smart meters cannot be used to track compliance with water restrictions. They only tell water customers and water companies how much water is being used and when. This information helps to identify leaks and it allows customers to save money by enabling them to understand and manage their water use.”
