Our Position on Water Reform

Northern Ireland is currently undergoing a process of Water Reform which means that for the first time Northern Ireland’s Water Service must become self-financing. From April 2007 Northern Ireland Water Service will beceome a government owned company (Go-Co).

The Consumer Council has been designated as the consumer representative body for water services from 1 April 2007.  The Consumer Council has been consistent in supporting the principle of paying for water and sewerage services, acknowledging that high quality public services such as health and education and improved infrastructure for water, sewerage and public transport all come at a cost and there is a need to agree on the best way of funding them now and in the future.

The Consumer Council has been heavily involved in the issue of Water Reform. In 2002 the Consumer Council undertook independent consumer research into consumers’ views and concerns of the water and sewerage service.  This research was published in an information paper Paying for Water in 2003.  We also used this research to inform its response to the 2003 Water Reform consultation. The research was repeated in 2004 and informed the Consumer Council's analysis paper on alternative proposals for Water Reform called Water – A Clear Way Forward.  The Consumer Council submitted a substantive response to the 2005 Integrated Impact Assessment on Water Reformand in 2006 to the consultation for Draft Water and Sewerage Services Order.

The Consumer Council was instrumental in bringing together a consortium of social partners, like-minded organisations who shared our fundamental policy positions, and this forum was a key driver in calling for a one-year delay to the introduction of direct water and sewerage charges.  The forum also secured significant change in protection for vulnerable consumers and the ultimate design and adoption of the affordability tariff.

The affordability tariff is a unique Government funded £30 million protection scheme for vulnerable water consumers – the first of its kind in the UK.  These proposals have moved on significantly from those announced in 2004 and provide a better outcome for every household

It is the Consumer Council’s view that this water-charging regime is incredibly short-term.  When water charges are introduced in April 2007 they will be pegged to the England and Wales average charge, and the unique £30 million affordability tariff will be paid in full by the Government rather than consumers through higher bills.  In only three years time all these certainties will disappear for the paying public.  Consumers could be open to many risks including the bills rising if the new Go-Co does not deliver the efficiencies and performance required of it. 

The Consumer Council has called for the Government to accept its responsibility now by providing water customers with a fairness bond which guarantees the continued pegging of prices beyond 2010, confirmation of the payment of the affordability tariff beyond 2010 and the requirement for their Go-Co to deliver on a business plan which fairly reflects and protects the consumer's interest. 

The vast majority of households will pay for water and sewerage services based on the capital value of our homes.  The Consumer Council considers this blatantly unfair.  Consumers have repeatedly told the Consumer Council in independent research that if they are to pay a separate water charge on top of their rates bill then they want a meter.  They have called for more to be done now to accelerate a move away from capital value-based water charges to a fairer, more affordable and sustainable payment system which reflects ability to pay and usage, and encourages the conservation of water.

Any specific concerns about your water and sewerage charge should be directed to the Water Service, however we would welcome your views on any aspect of the proposals.