United Utilities WATER RATES annual standing charge

[Xenophon PCDGS]

I notice whilst the companies supplying gas and electricity do not feature such a charge on their billing systems, United Utilities, a WATER utility company, besides detailing all their carefully itemised charges, still find a space to add on a "standing charge" item at the foot of their annual bill.

Whatever does this "item" cover, that is not already included in their unit cost pricing structure.....or is it something that one of their "bright sparks" in their corporate accounting division has added on to further increase their profit margins and thought that the bottom section of the itemised billing costs would be missed by most consumers ?....

 

[starrymarkb]

Both EDF and South West Water have one...

 

[radamfi]

I notice whilst the companies supplying gas and electricity do not feature such a charge on their billing systems

Actually many gas/electricity tariffs include a standing charge. It may even be cheaper to have a standing charge as the per unit rate will be lower. Many tariffs that don't have a standing charge have a two tier price per unit, which is effectively a standing charge if you use all the quota in the more expensive tier, which is almost everyone. Unless you are away from the property for extended periods of time, or are a very low user, having a standing charge or not is not particularly important.

Even if you don't use any water, I'm sure it could be shown that there are still some costs to the water company incurred just by being connected to the water supply, which could justify the standing charge. Removing the standing charge would merely mean an increase in per unit charges.

 

[Xenophon PCDGS]

Even if you don't use any water, I'm sure it could be shown that there are still some costs to the water company incurred just by being connected to the water supply, which could justify the standing charge. Removing the standing charge would merely mean an increase in per unit charges.

Who is to say that the water companies have not already included such costs as you describe into their basic unit price, then make this "end of the bill" charge as another way of increasing their profit margins ?

Unlike the case with both gas and electricity suppliers, the domestic consumer does not have the option of "shopping around" to obtain the best water supply and sewerage financial deal.

Am I being too cynical about what I see as profiteering motives wielded over a captive domestic market ?

 

[radamfi]

Who is to say that the water companies have not already included such costs as you describe into their basic unit price, then make this "end of the bill" charge as another way of increasing their profit margins ?

Unlike the case with both gas and electricity suppliers, the domestic consumer does not have the option of "shopping around" to obtain the best water supply and sewerage financial deal.

Am I being too cynical about what I see as profiteering motives wielded over a captive domestic market ?

How would you know that your unit price was unreasonable if it was inflated to replace the standing charge? It really makes no difference.

Water companies are highly regulated, more so than energy companies, because of their monopoly position. The regulator, Ofwat, imposes price limits, set every five years, while taking into account necessary capital investment.

 

[maniacmartin]

I don't think this is a money-grabbing scheme. It's quite common. There is a cost of maintaining the cost of pipes to your premises, and replacing rusting/damaged pipes etc, which doesn't really vary according to how much water you use.

 

[richw]

I found the electricity companies with a standing charge worked out cheaper for me due to their unit prices being cheaper.

 

[Xenophon PCDGS]

I don't think this is a money-grabbing scheme. It's quite common. There is a cost of maintaining the cost of pipes to your premises, and replacing rusting/damaged pipes etc, which doesn't really vary according to how much water you use.

A good point that you raise. Where does the householder become liable for the replacement or repair costs to corroded or damaged water-supply pipework from the main outside the boundaries of the property. How do they maintain these pipes that are on your land...is it done by some method that the householder is unaware of as we have never seen a single United Utility work-team anywhere near to our property in the years that we have lived there nor have we ever had correspondence from them saying that works will be carried out. ?
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To put matters into perspective, can everyone guess who has recently received his bill from United Utilities, which caused this thread to be commenced.....

 

[richw]

Paul, my father in law just received a bill for his house, he's away 4-5 nights a week, leaving his house empty, but leaves his electric heating on, due to damp problems. His bill was £303 for the quarter.
Myself, wife and 2 kids previous lived in the property previously and our highest bill when we were living there was £249 for a quarter.

 

[Lewisham2221]

Is it the standing charge which also covers the costs associated with sewer and drainage arrangements? I know there's something on my (Severn Trent) water bill which states to the effect that you are liable to that charge unless you can prove that no sewage or waste water, including rain water, leaves your property to enter a public drain.

 

[Xenophon PCDGS]

Just to make matters clearer for those who are unaware what United Utilities actually do, can we keep all postings on this thread to matters concerning WATER supply companies, please.


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Please note that there is already another thread currently running called "Ever-increasing domestic ENERGY bills" for those forum members to use about ENERGY bill postings.

 

[Trog]

It might be worth mentioning that you can sometimes get a discount on the sewerage side of your water bill if you can prove that the rainwater from your roof runs into soak aways on your property rather than drains leading out to the water company sewers.

 

[starrymarkb]

Nice thing from South West Water - £50 off per year until 2020 thanks to government subsidy...

 

[richw]

Nice thing from South West Water - £50 off per year until 2020 thanks to government subsidy...

Pretty much everyone in southwest water should see the £50 credit on their next bill.

 

[Xenophon PCDGS]

Pretty much everyone in southwest water should see the £50 credit on their next bill.

Was South West Water an area that had high water and sewerage charges in comparison to other areas of Britain ?

 

[starrymarkb]

With the subsidy the average SWW bill will be £500 per year.

 

[Zoidberg]

A good point that you raise. Where does the householder become liable for the replacement or repair costs to corroded or damaged water-supply pipework from the main outside the boundaries of the property. How do they maintain these pipes that are on your land...is it done by some method that the householder is unaware of as we have never seen a single United Utility work-team anywhere near to our property in the years that we have lived there nor have we ever had correspondence from them saying that works will be carried out. ?

In terms of the water supply, the householder is liable for the pipework from the utility company's stop-cock in the street.

In terms of drainage/sewerage, recently, the water companies have taken ownership of previously private shared drainage pipework to the sewers.

 

[richw]

Was South West Water an area that had high water and sewerage charges in comparison to other areas of Britain ?

yep.....the highest.

 

[Xenophon PCDGS]

In terms of the water supply, the householder is liable for the pipework from the utility company's stop-cock in the street.

Does that mean that the water companies will have removed any in-built unit charges to cover the upkeep costs of these pipes that are now the responsibility of the householder to bear the cost of labour and pipework replacement costs?

 

[Zoidberg]

Does that mean that the water companies will have removed any in-built unit charges to cover the upkeep costs of these pipes that are now the responsibility of the householder to bear the cost of labour and pipework replacement costs?

I don't understand the "now" bit. As long as I've owned a house in England, it has been the case that the pipework from the stop-cock in the street, which isolates the supply to the property, has been the responsibility of the householder.

EDIT: Here is what Severn Trent has to say - http://www.stwater.co.uk/households/pipes,-leaks-and-drains/responsibility-for-water-pipes/

Extract:

We own and maintain the water mains and services in the street and footpath up to the boundary of your property, apart from some minor or rare exceptions.

Property owners are responsible by law, for maintaining the underground water service pipe that run from the boundary of their property into their home or business. They are also responsible for all the pipework within their properties.

 

[DarloRich]

I notice whilst the companies supplying gas and electricity do not feature such a charge on their billing systems, United Utilities, a WATER utility company, besides detailing all their carefully itemised charges, still find a space to add on a "standing charge" item at the foot of their annual bill.

Whatever does this "item" cover, that is not already included in their unit cost pricing structure.....or is it something that one of their "bright sparks" in their corporate accounting division has added on to further increase their profit margins and thought that the bottom section of the itemised billing costs would be missed by most consumers ?....

Paul - you are missing the crucial point with energy companies. They are all a set of robbing barstewards. British Gas profits up 11% after a 6% rise! They know we either pay or freeze and starve in the dark.

At what point does it become too much and people simply refuse, en masse, to pay? I know people who already have to choose between light or heat. That seems wrong to me, does it not seem wrong to you?

I particularly love the sanctimonious conservatives on this point. Now who set up this system i wonder......................