Draft Guidance on Company Social Tariffs 2011

Section 44 of the Flood and Water Management Act 2010 enables water and sewerage companies in England and Wales to include social tariffs in their charges schemes, reducing charges for households who would otherwise have difficulty in paying their bill in full. The Act requires the Secretary of State to issue guidance to water and sewerage companies and Ofwat, and requires companies and Ofwat to have regard to the guidance. We have now produced draft guidance and consulted on this guidance. This consultation was aimed at water and sewerage companies and organisations representing customers but we welcomed responses from all interested parties.

Our previous consultation on water affordability closed on 17 June 2011. It stated that Government sees company social tariffs as a key tool in tackling affordability challenges. The content of the draft guidance on company social tariffs has been shaped by the response to the consultation.

The summary of responses to the previous consultation is available at www.defra.gov.uk/consult/2011/04/05/water-affordability-1104/

The final guidance will provide the framework within which water companies can bring forward company social tariffs to assist households who would otherwise struggle to pay their bills. Welsh ministers have identical powers to issue guidance to undertakers in Wales, so this guidance is for companies in England only.

The consultation invited views on the draft guidance.

The final guidance was published on 22 June 2012:

• Social tariffs - company guidance

• Water industry policies