Water has never been so impure - Severn Trent (Severn Trent Water)

Member Name: makro74

Product:	Severn Trent Water
Date:	09/08/08 (204 review reads)
Rating:

Advantages: Not many, except supply of clean water, somtimes with fluouride

Disadvantages: Monopoly power, dictation, 10 day bill

Severn Trent Water is one of ten privatised water companies supplying water in the UK. It was was the Water Act of 1973 which created Severn Trent from the amalgamation of at least 25 publc authorities incuding Birmingham and Nottingham water boards. It supplies water to 8 million plus people and is regulated by OFWAT.
In 2005, it was ordered to repay £4m back to customers for over-charging. Further fraud investigations and fraud allegations and substantial fines have followed.

The company showed its better side when during the floods of 2007, it actively placed bowsers, in local areas. It currently operates 11 resevoirs.
It employs over 12000 people and a turnover of £1.48billon, netting £269 million as after tax profits.

However, like the figures above suggest, obscene amount of money is made by the company, yet it increases its water bill, both metered and unmetered by 6% on average. This is higher than the majority of the council tax increases who are required to alot more than deal with water. So it is beyond me how these increases are justified when clearly the leaks and other problems have not been resolved and we still have huge profits made by this company.
The problem is the monopoly status of Severn Trent. For example, they will send a bill out in six month intervals and expect you to pay all of it within 10 days of the date of the letter! When I questioned this to them, they referred me to the law and how credit might be affected if you don't pay on time. Effectively, it is their way of saying either go on Direct Debit or we will use the law.

In my view, water is not a commodity, it is a necessity for us all. The very fact that it is in the private sector gives rise to greedy profits and shareholder divedends only looking at the profits superseding the product itself.
Customer service is poor when you have problems. For example, a friend of mine once had a sewer pipe burst outside her house. Severn Trent took months to resolve the problem and were reluctant to pay for any other flood or hygiene costs other than the area they had to get to to sort the pipe out.

Metered or unmetered?
The best thing is, if you haven't got a meter then DON'T install one, especially not with Severn Trent. Regardless for whatever reasons you may have for having one. I would never recommend it. The reason is simple. In most cases YOU WILL NOT save money.
Let me explain:
1. When you have your unmetered bill, you have a charge for supply, standing order and sewerage plus surface and drainage. With a meter people wrongly think it is for how much you use only. You will still have to pay the standing charge, sewerage, drainage and surface water charges - and when you link the return water with the supply usage, you are effectively doubling your cost.

2. Problems of leaks and condensation often a problem over time, costing more money.
3. You will find it in order to save money you will have to bend over bakwards to control water. Toilet flushes, running water, washing machines, all would have to be limited

4. Children - forget it
All these issues were put to Severn Trent. They were not interested, and mentioned to Water Voice, another body to regulate water. They forced ST to talk, but they were adament their charges are justified.

All in all, Severn Trent supplies the water and makes massive profits but keeps raising its prices year in year way above inflation. OFWAT, and Water Voice are supposed to regulate these prices but obviously making such a large amount of profit you can afford to employ the best negotiator to protect your interests.
On the other side of the Water Meter argument, are the so called 'nicely proportioned number of adults to the size of the house'. If this is the case you may find the meter bill cheaper especially if you make concessions on conserving water and go on holidays alot! But sadly these are not typical households, and households with families need larger properties but cannot control the members of their family on usage, its practically living unhygenically.

I am all for efficiency and water conservation, but I am also angered by the sheer profits of Water companies and the vast leakages of wasting water that the companies. Meters are not the answer, and more should be done to increase either competion of Severn Trent or put it back in public hands.

Summary: Water commercialised is really not a provision for the public