Just a Week to Go to Protest About 17% Rise in Water Rate - And For What?

12.29.45pm UTC (GMT +0000) Tue 5th Oct 2004

Will Water Price Hike Make the Service Better?

Hampshire MEP and Eastleigh parliamentary candidate Chris Huhne warned Eastleigh residents to put in their objections to the proposed 17% hike in Southern Water rates by next Friday.

Mr Huhne said that the time limit for letters to the water companies' regulator Ofwat was about to run out, and protests had to be written quickly if they were to have an effect.

Ofwat has proposed cutting Southern Water's proposed 42 per cent increase (over and above normal inflation) down to 17 per cent over five years, but Mr Huhne said that the increase was still excessive. 'The proposed increase only looks modest by comparison with the original proposal. On any other basis, it is sky high'.

In an announcement yesterday (Monday), Environment Secretary Margaret Beckett who is responsible for water added various extra investments and said that there should be some increase beyond the Ofwat draft 17 per cent.

Mr Huhne said: "This is an unfair increase in an unfair tax. Local residents are being forced to pay for basic investment that developers of new housing should pay for in areas like the Thames Gateway. Why should Eastleigh residents pay for the investment needed for new residents in a town like Ashford that will double in size because of government plans?"

Mr Huhne welcomed the planned improvement at the Eastleigh Chickenhall sewage treatment works to reduce the level of ammonia and phosphorous discharged into the River Itchen, which will reduce weed and algae growth and mean more and healthier fish.

However, Mr Huhne pointed out that the only spending project that will bring direct benefit to Eastleigh residents is aimed at Merdon Avenue in Chandlers Ford. That is long overdue, but it leaves many areas in the borough still without solutions to their problems.

"The Government has put general environmental improvements ahead of fixing the substantial sewerage problems that exist in the borough, and which can have a really unpleasant impact of residents' quality of life as well as imposing costs and cutting the value of the home' said Mr Huhne. 'Flooding often occurs with heavy rainfall, which is set to worsen with the extreme climate conditions created by global warming'.

"There have been sewerage problems in Eastleigh itself - for example, Consort Road - and at Boorley Green and Netley Abbey. This plan will do nothing for most of the people who need investment in the borough, yet we will be expected to pay through the nose for it".

Mr Huhne pointed out that water rate was as unfair as council tax, as it is based on the size of the home regardless of the amount of water used or the income of the household.

Ofwat published its draft price limits for consultation in August announcing a proposed average increase of 17% which would see the average household bills in the Southern Water area rise by £44 from £259 to £303 over five years (before inflation, which will add further to this amount). It is estimated that the additional policies announced by the Government this week would add about another £1 to customers' bills by 2009.

Mr Huhne said that protests should arrive with OFWAT before the 13 October 2004, and be addressed to Philip Fletcher, Director-General of Water Services, Office of Water Services, Centre City Tower, 7 Hill Street, Birmingham B5 4UA.