D?r Cymru Welsh Water, based in Nelson, has announced that £32 million – the equivalent to dividends paid to shareholders in other companies – is to be reinvested.
The not-for-profit company has said it will provide additional financial support for customers struggling to pay their bills and will also invest in renewable energy generation schemes to cut its carbon emissions.
It will also use the money to target improvements for areas suffering repeat problems with their water supply and part-fund a new visitor centre at the Llys y Frân reservoir in Pembrokeshire.
This £32m investment is in addition to the previously announced £1.7 billion investment between 2015 and 2020.
The company also has a commitment to keep the average household water and sewerage bill below the rate of inflation every year until 2020.
Robert Ayling, Welsh Water Chairman, said: “I am glad and proud to report that after 15 years of our ownership, Welsh Water is in very good shape both operationally and financially.
“Our sole purpose is to achieve the highest standards for customers at the lowest possible cost. We have shown that our non-shareholder model of ownership can deliver that.”
Welsh Water’s Chief Executive, Chris Jones said: “Our unique ownership model allows us to use, for the benefit of our customers, money that in other companies would be paid to shareholders.
“This will help cut our costs – and therefore customers’ bills – by generating more energy on our own sites; by improving the service in areas where we’re having repeat problems; providing additional support for customers struggling to pay; and to help build a new environmental visitor attraction in Pembrokeshire.
“Customers have indicated that they want to see us strike the right balance between keeping bills low today, improving performance where it isn’t to the standard they expect, and investing now to cut the cost for future customers. The additional £32m of funding announced today will help us strike that balance and our research shows that customers support this package by four to one.
“We also believe it is important that customers have a voice in how the value generated by our not-for-profit model is used in the future. We will shortly launch a consultation over the summer months inviting our customers to have their say on this most vital of public services.”
I hate the fact poorer customers are going to effectively receive lower bills. We all use water so we should all pay the same price for the water we use. Richer customers shouldn’t be expected to cover the water bills of poorer customers.
What I find more difficult to understand is why, in a water rich country like Wales, we pay more than almost every other palce in Britain. In oil rich countries the people pay next to nothing for petrol.
It is no wonder that some find it difficult to pay, before I had a water meter installed I was paying a lot more , annually, for water than I was for gas – which these days is bought and piped in from abroad.
You would think an island nation with quite a bit of rain would have an abundance of water to supply for cheap prices.
Companies do not supply things efficiently and the reservoir idea is not a great set up.
Do you also resent paying for the education of other peoples kids, through your rates? If you dont have kids of your own?
Do you resent paying for cleanng of parks if you dont use them?
And; do you resent paying for a police service you ever increasingly do not receive? but for which you pay an uncreasingly heavy price for.?
It’s different.
We all use water. Water is identical for all of us. It is only fair we ALL pay the same price for the same good. How would you feel if you went to Tesco and the manager said milk is £1 extra for you because he thinks you’re ugly? You would be offended and shocked. It is the same thing here. We should all pay the same bills and not put up with price discrimination.
First I dont agree that I and others should pay for a servcie or product I dont use, secondly, there is a system under which we all pay the same for WATER, its through a meter, .
Welsh Water is a non shareholder company. In other words it was set up to be run for the benefit of the people and not share holders. The fact that water is the essence of life and Welsh Water is providing this essence for ALL people, is great and is how it should be. This great country, Wales, does have an abundance of water and we should ALL be grateful that we have easy access to clean, safe drinking water provided by a company that puts the people first. irrespective of your income or your circumstances this water is made available to all. Welsh Water realise that some people struggle managing or paying their bills. The simple solution is to lower their bills to an affordable level, which is what Welsh water could be implying when they state, help those struggling to pay. In my view this is not a question of the richer paying more that than others. But a question of re distribution of profits made by a company that was set up to serves ALL people. I think we are lucky to have a company like Welsh Water, that 32 million could have gone to pay dividends to share holders, and the cost of water could be a lot higher than it is. Share holders are only interested in the money they get back from their investment with no thought or care for other people, especially those that struggle to make ends meet.
Share the profits to lower water bills for ALL OF US? YES!
Share profits to lower water bills for those less well off so there are different tariffs for different people? NO!
Welsh Water have NOT said that different tariffs will apply, what they say is they want to help people manage the system of paying thier bills, They already have a system of rebated bills for people who are sick and who`s water consumption is greater due to these prescribed illnesses.
Would you also deny this `advantage` to severely sick people?.