| Down the Plughole: why is our water so expensive? |
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Page 3 of 8 South West Water is regulated by OFWAT, but it is the company that goes to the regulator and suggests the prices they would like to set. OFWAT then reviews and decides a price to suit both the suppliers and customers. However, water suppliers charge different rates, based on water availability and the geographical area. Cornwall being a peninsula coupled with its extensive coastline that South West Water is responsible for keeping clean are the main reasons why water rates are so high.  View of St Agnes Beach from inside of a new treated water outlet. Photo by Oliver Rudkin. Stan Beale, a water-rate payer in Brixham, has been campaigning about South West Water’s rates and practices since the early 1990s, just after the industry was privatised. In his eyes, South West Water is a ‘publicly funded company’ in that its revenue is driven by the rate-payers and there is no real competition. He said: “You’ve got to use them, it’s not like you can vote with your feet.”  Treatment works are constantly being upgraded to ensure high quality water. From his 15 years of research, he has discovered that, from a total revenue of £4.5 billion since flotation, South West Water’s parent group, Pennon, has taken £1.3 billion of the public’s money in dividends to line the pockets of shareholders. Mr Beale said: “This huge expense can hardly be said to be promoting economy and efficiency in South West Water, or the loss in revenue in any way attributable to the water and sewerage operation.” He called on the regulator OFWAT to perform its powers and duties to promote economy and efficiency, but overall to protect customers. “We hope that it will not be long before someone speaks up for customers. In the meantime, the captive South West Water customers are being shamelessly taken for a ride.” |
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