Water Industry (Financial Assistance) Bill

The hon. Lady will understand that I am not privy to what is in the Queen's Speech. I very much want a water Bill as soon as possible, but we have given a commitment that the Bill will be available for pre-legislative scrutiny, and that is not something that happens overnight—it requires a process and it would be tight to get in the full level of pre-legislative scrutiny and a Bill in the next Session. However, I accept her point that it is needed by many people as quickly as possible. We know that some households in the south-west and other regions—let me reiterate that other regions are also affected—struggle with their water and sewerage charges. We will soon be issuing guidance that will allow for the development of company social tariffs. Water companies will be able to reduce the charges of customers who would otherwise have difficulty paying in full. In consultation with their customers, companies will decide who needs help in their area and then design local solutions to address local circumstances. Water companies know their customers and local circumstances. Companies vary in size and customer base, and average bills also vary from company to company. On Second Reading, Members spoke about the different kinds of affordability problems faced by their constituents. They also recognised that in some parts of the country there might be less scope than in others for customers to cross-subsidise others in the region. I urge hon. Members to consider the Cholderton company, which serves only about 2,000 people. The difficulty of having a nationally mandated tariff that would apply to that company as well as to Thames Water, which has several million customers, accentuates the problem. Imposing one-size-fits-all standards, as new clause 1 would require, on companies that decide to develop social tariffs would prevent them from reflecting the circumstances of their customer base and what their customers want. Some companies might be less likely to introduce social tariffs if the model did not suit their local circumstances. If hon. Members intend that all private water companies should be forced to introduce a centrally imposed social tariff scheme, I cannot support the introduction of that regulatory burden.