Written question asked by David Drew (Labour) on Monday, 30 January 2006, in the House of Commons. It was due for an answer on Monday, 6 February 2006. It was answered by Elliot Morley (Labour) on Monday, 6 February 2006 on behalf of the Department for Environment, Food and Rural Affairs.

Water

Question: To ask the Secretary of State for Environment, Food and Rural Affairs what estimate she has made of the level of debt owed to water companies for non-payment of water rates; what discussions she has had with the water companies on this issue, with particular reference to the policy of non-disconnection except in extreme circumstances; and if she will make a statement.

Answer

Customer debt is primarily the responsibility of water companies to manage. Companies still have a range of means to recover payments, including through the courts. The previous power of water companies to disconnect household customers for non-payment of water bills was ended, by the Water Industry Act 1999, without any qualification concerning extreme circumstances. Water companies, in their discussions with Ministers and officials, are not pressing for the power to disconnect to be restored. I am prepared to consider any suggestions for how Government should help companies to tackle customer debt. The industry itself needs to identify and apply best practice in debt management, and I welcome companies' efforts to do so.The responsibility for the economic regulation of the water industry rests with the Director-General of Water Services (Ofwat). Ofwat monitors companies' debt situation on an annual basis.The following table presents figures provided by Ofwat on the revenue outstanding to water companies by household customers. This table sets out key indicators for 1998–99, 2003–04 and 2004–05. It also shows the percentage changes between these years.

2004–05 prices	1998–99	2003–04	2004–05	Percentage change between 1998–99 and 2004–05	Percentage change between 2003–04 and 2004–05
Household revenue outstanding <48 months	705	804	828	17	3
Household revenue outstanding <12 months	381	377	400	5	6
Household revenue outstanding 12–24 months	175	203	204	16	1
Household revenue outstanding 24–48 months	148	224	224	51	0
Household revenue outstanding >48 months	n/a	120	134	n/a	11
Household revenue outstanding <12 months as a percentage of household revenue billed in that year	7	7	8	n/a	n/a
Household revenue written off	69	96	114	65	19
Household revenue written off as a percentage of household revenue billed in that year	1.3	1.9	2.2	n/a	n/a
Notes: 1. All numbers are rounded for ease of reference. 2. Percentage changes are derived from unrounded numbers.
⁽²⁴⁾ Includes revenue written off.

Secondary information

Type: Written question
Reference: 47845; 442 c892-4W;442 c892-4W
Session: 2005-06
Subjects: Debts Fees and charges Non-payment Water Water charges Water supply Water companies
Link: View this Written question on www.publications.parliament.uk

Water

Secondary information

Librarians' tools