In a modern world, water is recognised as a human right.  It is understood to be essential to life and yet some are so concerned about the cost of it that they actively decide not to use the water they vitally need and find themselves falling into debt or self-rationing their water use. These families may also be making impossible choices between heating and eating, at the same time as restricting bathing to once a week, all sharing the same bath water, because the cost of their water, and the cost of heating it, is just too high.

In our January 2020 response to Ofwat’s forward work plan, we acknowledged that driving innovation across the water sector was vital to address the strategic challenges the industry faces. We believe the innovation competition allows an additional opportunity for companies to address these key challenges.

Driving consumer and societal outcomes through company performance should remain a key ambition of Ofwat so that it can continue to demonstrate the legitimacy of a privatised water sector even with the reduced risk of re-nationalisation following the recent general election. Developing a richer understanding of company performance is valuable, providing the commitment to do so leads to consistent and comparable metrics made visible to a wider audience, including customers.

This paper sets out to explore how adoption of a common and consistent set of approaches to tackling ‘water poverty’ may lead to successful outcomes for customers. It is designed to generate debate across all interested stakeholders and to consider ways in which water can be made affordable for all customers.

NEA welcomes Ofwat’s recognition of affordability issues with water bills, highlighted by the 3 million customers in England and Wales saying they struggle to pay their water bills. Ofwat’s interventions to ensure bills are reduced by over 12% before inflation will make a significant difference to customers who are struggling to, or at risk of struggling to, pay their bills.