South West Water is set to launch two new innovative tariff trials as it looks to find fairer ways to charge customers, while protecting the natural environment.
The new Seasonal tariff and Summer Peak tariff will be trialled with just under 3,500 selected household and non-household customers across Devon, Cornwall, Bristol and Bournemouth.
South West Water has carefully considered the customers who will be on the trials and have excluded those on their social tariffs. The customers on the tariffs will be supported throughout the trials by the company’s dedicated team and offered additional ways to save water such as home water efficiency audits.
The trials are part of South West Water’s promise to customers to find new ways of charging that ensure their bills are fair and reflective of customer water use – a move backed by regulator Ofwat and the Consumer Council for Water (CCW).
They are also designed to protect the environment in times of high demand. This reduces the stress on the region’s reservoirs and rivers, helps enhance our unique habitats and ecosystems, and reduces the risk of droughts.
The Seasonal tariff will offer customers lower rates between October and the end of March during periods of lower demand, with a higher price in the summer reflecting the added cost of storing and supplying water during these peak months.
Meanwhile, the Summer Peak tariff will also focus on keeping water usage down during the drier summer months when resources are under greater pressure. This tariff offers a lower than normal base price for water that increases once a usage threshold is met.
Both tariffs are designed to benefit customers who use less water.
Dani Twelvetree, South West Water’s Head of Customer Communications and Engagement, said: “We understand that our customers are looking for fairer ways to be charged for their water usage. These new tariffs are a direct response to that feedback, offering more control over bills and encouraging year-round water efficiency.”
Andrew White, Senior Leader at CCW, said:
“It’s great that South West Water is exploring more innovative ways of charging customers, as part of wider efforts to help people and businesses save money and protect the environment by empowering them to reduce their water use.
“Our research shows nearly half of customers have seen their finances get worse over the past year, while people also having a growing concern for the environment. Trialling alternative charging options has the potential to alleviate the pressure both on people’s finances and our water resources and we look forward to seeing the results of this new approach.”
The new trials follow the launch of South West Water’s Smart Saver tariff trial in April this year, where selected household customers are offered a cheaper water rate for lower use, with rates increasing for higher usage.
They also align with the company’s work to increase water resources across the region through £125 million of investment. This includes repurposing disused quarries, introducing desalination to Cornwall for the first time, and continuing to find and fix more leaks than ever before.
The insights gained from these tariff trials will help South West Water work with government, regulators and the Consumer Council for Water to roll out improved ways of charging across the region.
