Water company debts have rocketed by 130% in the last decade with at least 5.7 million households in the red, another 700k at least 4 years behind with payments.
A new wave of inflation-busting water price rises from April is set to tip even more families over the edge.
Figures show that, in the last financial year, customers owed an eye-watering ?1.635bn to their supplier, up from ?705million in 1998/99
The situation is so bad that water firms were forced to kiss goodbye to ?328m last year, a ?168m increase on the previous 12 months. But it is customers, not the companies, who pick up the tab as bad debts add around ?15 a year to the average households bill.
Since 1999 firms have been banned from cutting people off, regardless of how much they owe. Industry regulator Ofwat says 80% of those reporting themselves as being in water debt were customers living in rented properties.Customers who are at least a year behind with payments owe an average of ?402 each, latest figures show.
A postcode lottery will see many households hit with even bigger increases because, unlike with energy providers, households are lumbered with the firm that supplies water in their area. If you are in the Severn Trent area you will pay about ?326 a year from April. But households in South West Waters region will splash out around ?217 more, with its average bill a hefty ?543.
The level of bad debt in the water industry is approximately three times higher than that of the energy sector, despite water and sewerage bills being around a third of the cost of average energy bills. But while customers may feel powerless, there are different ways to reduce their bill or get help with payments. The first rule if youre struggling is to get in touch with your supplier as soon as possible. Firms offer flexible payment options such as weekly or monthly plans.
Wednesday February 8th, 2012 
