New trials may reduce water costs

South West Water will introduce two innovative tariff trials next month in an attempt to find fairer ways to charge customers while protecting the environment.

Starting on October 1, just under 3,500 households and businesses across Devon, Cornwall, Bristol, and Bournemouth will participate in either a seasonal tariff or a summer peak tariff trial.

These trials aim to assess more equitable billing methods based on water usage.

Customers on social tariffs are excluded from the trials.

Those selected will receive full support from South West Water's dedicated team, with additional measures like home water efficiency audits to help save water.

This initiative aligns with South West Water's commitment to fairer billing practices, a move supported by both 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 lessens 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 aims to reduce water usage during the summer when resources are more strained. 

It encourages water conservation by offering a lower base price, which increases when you exceed a certain usage threshold. 

Both tariffs are designed to reward 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 have 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, which offers selected household customers lower water rates for reduced usage, with rates increasing for higher consumption.

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 the government, regulators, and the Consumer Council for Water to roll out improved ways of charging across the region.