WWT ROUND TABLE 2009
Sponsored by
Left to right: John Cuthbert, Tony Smith, Martin Hurst, Tony Conway, Bob Baty, Ian Barker, Dan McCarthy, Dr Stephen Bird, Rob Ashley
the highest bills in the country. the industry to be innovative about retrofits be better off with metering. The analysis of
Unsurprisingly, customers switch to meters or whatever, you are looking through the this is horrendously complicated, which is
quickly because they know that they can wrong end of the telescope. why it has been delegated and Anna Walker
save money and, when they switch, they has been asked to look at it. This does not
reduce their demand by 10-15% and they Martin Hurst I do not think it is either/or. under-estimate in any sense the fact that
keep it low. That is not coincidental with a The government’s approach is that we will the government thinks we need more
price signal and a meter penetration level. If need universal metering in water-stressed meters and is starting to challenge
you could bring that across the whole areas at least by 2013. I cannot comment companies about doing it – particularly in
country you could start to have a dialogue on the water resource management plans water stressed areas. However, you have to
saying that this is what the water industry is because we have a decision to make on take into account the social considerations.
going to do as its part of the equation in them, obviously, but looking at those I have
terms of leakage control or whatever it is. the impression that a number of companies Bob Baty One of the challenges, which has
However, as far as the individual is agree with that direction of travel. been around for a long time, is that we are
concerned, they can help us to help them As you know, in the South-west, we have trying to design a system that takes account
by responding to varying price signals, that is to take into account the social dimensions of – the term “extreme anomalies” is wrong,
why we are trying rising block tariffs as an and that is why we have asked Anna because there are a number of people
example, to try to understand the differential Walker’s review to look at the totality of the affected by it, but why aren’t they dealt with
signals you need to send to customers piece. As meter penetration grows, you find in another way in the benefits system as
to incentivise the behaviours we are that can achieve, say, a 10% reduction in such? Then the generality of metering of
looking for. usage and potentially more if you have water reflects the water that is used but the
The advantage of a meter is that it intelligent tariffs on the back of it. I think way in which people pay their bills can be
becomes personal, and water becomes Anna is definitely looking at that, as are a achieved in a totally different way, to
personal as soon as people have a meter, number of companies. However, you also alleviate the social impact of it. That is what
just as gas or electricity does. Until it have some quite poor losers – in particular, happens in other areas, with other sources.
becomes personal, and until you use those large families in low rateable value Why does that not happen in the water
signals, tackling it from the other end and properties. industry?
tinkering with abstraction licences or asking I do not think that the country as a whole
would object to increased bills for people Martin Hurst It doesn’t typically happen in
“We do not really know
who were using large amounts of water to other areas. The only area where your direct
water large gardens and clean the roller costs are reflected in benefits is housing,
what the price for the
twice a week, so to speak – excuse the which is because housing is such a huge
caricature. However, there is a social issue part of your costs so that not to differentiate
elasticity of demand is
about what you would call the tipping point, would be really difficult. However, for
where there start to be some quite hefty energy, where the costs are three times
for water” increases for people who will not necessarily those of water on average, if you look at
14 Round Table June 2009