Water firms allowed to hit Brits with surge pricing during droughts despite fury over rising bills

MoneyNews Money WATER firms will be allowed to charge higher prices during droughts as part of new Government-backed plans. Suppliers can impose “surge pricing” and factor water “scarcity” into bills, as Brits were warned to use less water in their homes. Many areas in England are now under a hosepipe ban (stock image_ Credit: Getty Dry Victoria Tower Gardens next to the Houses of Parliament as drought conditions continue Credit: Shutterstock Editorial It comes despite Andy Burnham last week slamming firms for winning approval to charge households more. The Prime Minister had hit back at regulator Ofwat for allowing Severn Trent, Southern Water, Thames Water, Wessex Water and South East Water to increase bills above previously agreed levels. Sign up for the Money newsletter Thank you! But the Government yesterday indicated it supported so-called “surge pricing”. Sources insisted trials had shown it could cut bills for most consumers. The plan, reported by The Sunday Telegraph, emerged just days after three-quarters of the country fell into drought. Some 27million people are currently living under a hosepipe ban. A Department for Environment, Food and Rural Affairs spokesman said the changes would “make bills fairer and more affordable while encouraging greater water efficiency”. But Feargal Sharkey, the former Undertones singer turned water campaigner, said: “For 40 years, these companies have had legal obligations to help consumers to reduce their demand and they have failed. Most read in Money “Now they’re going to penalise consumers for that failure.” The new plan comes after a trial with 14,000 houses in Lincoln and Norwich, where around half of customers cut their consumption over being made to pay significantly more in peak months. An Ofwat spokesman said: “The efficient use of water is in the best interests of everyone, including businesses. “The options we are progressing would support greater consideration of water scarcity and efficiency by water companies when setting their charges.” A government spokesman said: “Water companies are trialling new charging structures which must, as promised, make bills fairer and more affordable while encouraging greater water efficiency.” Comment now