Affinity to trial rising block tariff to support water affordability

Affinity Water is to trial a rising block tariff this year which is likely to include a free block of water.

The trial, the first of its kind in the industry, will compulsorily affect 1,500 metered customers including high and low users and cutting across income distribution groups (with provision for exclusion for those in certain vulnerable circumstances).

Those on the trial will pay different prices for first, middle and end blocks of consumption. Their consumption will be compared against a control group. The company will assess whether the new tariff structure affects usage, and how it supports water affordability.

James Tipler, head of financial support and service delivery, explained: “We hope to see evidence that water bills become more affordable for more of our customers. We have estimated that at least two out of three households will pay less if usage remains unchanged.”

Affinity said research showed just over half its customers believe this would be a fairer way to charge.

At the Future of Utilities Water event last Monday, Aileen Armstrong, senior director of company performance and price controls at Ofwat, praised Affinity for answering its call to “think more creatively about charges and to establish trials directed at supporting customers struggling to pay”. She added: “We welcome this innovation and we want more companies to follow this lead and develop charging trials for next year.”