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Ofwat has today welcomed the Government's consultation paper, 'Reductions for Vulnerable Groups'. In publishing its response to the paper, Ofwat agrees that the vulnerable group regulations should be extended further to offer assistance to more low-income customers with a meter who need to use large amounts of water and might otherwise over-constrain their water use. Ofwat does not support extending the regulations to all unmeasured customers, however, as they already pay a fixed rate for their water. There is therefore no financial incentive on them to restrict their water use. The costs of this scheme are met by all water customers. Ofwat has a duty to protect the interests of all customers, and has taken account of this in its response. Ofwat considers that the extent to which low-income customers require any more help with their water bills more generally is a matter for Government to address through the tax and benefits system, rather than through cross-subsidies from other water customers. Note to Editors: 1. The Director General of Water Services is the economic regulator of the water and sewerage industries in England and Wales. He exercises his powers in a way that he judges will allow them to carry out their functions properly, and finance them. 2. To qualify for the capped tariff available under the current vulnerable group regulations, a metered household must be receiving a specified income-related benefit and contain either three or more children under the age of 16, or a person with a qualifying medical condition (listed in the Regulations). DEFRA issued a consultation paper in February 2003 which set out the Government's proposals for amending the protection offered to vulnerable metered water customers under the Water Industry (Charges) (Vulnerable Groups) Regulations 1999. 3. Copies of 'Ofwat response to Defra consultation on the reductions for vulnerable groups' May 2003 will be available from the Ofwat website on www.ofwat.gov.uk or from the Ofwat library on 0121 625 1373. MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON: 0121 625 1416/1496/1442 Out of hours enquiries to pager: 08700 555 500 water 503/509. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk  | ||||||
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