'water Poverty' Loans To Utilities Set To Hit €4Bn

[interestrateripoff]

http://www.independent.co.uk/news/business/news/water-poverty-loans-to-utilities-set-to-hit-euro4bn-2029067.html

The EU plans to raise loans to the UK's 10 biggest water utilities by 60 per cent to €4bn (£3.4bn) as they try to reduce the number of customers who cannot pay their bills.

The companies, which include FTSE 100 stalwarts United Utilities and Severn Trent, take advantage of cheap EU loans to reduce "water poverty"– where a bill accounts for more than 3 per cent of household spending. Last year, the value of bills left unpaid for more than 12 months was £804m, up 16 per cent on 2008.

Under legislation introduced in 1999, utilities cannot cut off non-payers. This, coupled with necessary infrastructure maintenance and development, has led to inflated bills and, in turn, more bad debts.

The European Investment Bank (EIB), which is the EU's infrastructure lending arm, has helped the utilities by lending on specific projects over their five year investment programmes. During the last review period, the utilities received €2.5bn.

Water industry sources said that the EIB is planning to lend €4bn in the 2010-15 period, known as Amp 5. Since the turn of the year, the EIB's water team has met the utilities over several visits to draw up draft funding proposals and are particularly keen to support water treatment projects that help tackle climate change.

Senior EIB executives are expected to sign off the plans by the end of the year. Already Northumbrian, Yorkshire and Welsh Water have proposals that are deemed "under appraisal" at the EIB, meaning that they should be close to approval. The trio are looking for up to £150m each in loans.

A sector specialist said: "The EIB's water team was last here a couple of weeks ago and agreed to offer new facilities to one of the major utilities."

The EIB has been encouraged by EU finance ministers to provide a stronger lead in the European lending market since the start of the credit crunch three years ago. In 2009 it lent a record €79bn.

Simon Brooks, EIB's vice-president for the UK, said: "The EIB is a long-term supporter of the UK water industry and the largest single lender in the sector. Across Europe, the EIB seeks to focus lending to the sector where it can bring clear environmental benefits and contribute to broader climate action activities."

The EIB was formed in 1958 and since then has lent more than €30bn to water and sanitation projects. In the past five years, this has intensified with an average €2.1bn loaned to members.

Water something we all can't live without and the higher the bill for said product the more that can't pay meaning bills go up creating more bad debts.

Genius.

Still privatisation has helped deliver a more reliable water system.....

[Johnny Storm]

Are we all missing a trick here? Do people just not bother paying it and nothing happens? Not that I have a water bill personally, its included in my rent.

[no-way]

http://forums.moneysavingexpert.com/showthread.php?t=208552

<<HUGZ>>

[tim123]

Are we all missing a trick here? Do people just not bother paying it and nothing happens? Not that I have a water bill personally, its included in my rent.

You will (eventually) get sued. But if you haven't got the money they don't bother. There is nothing else that they can do.

[Ben from Dover]

I've never paid a water bill in my life accept for when we lived in dubai. As I see it it is a human right and something that is provided plentifully in the UK by nature. Its the same with TV licenses, just cause they send you a bill doesn't mean that they are in the right

edit to point out that i'm not saying tv license is a human right, just that your a mug if you pay for one

Edited July 18, 2010 by Ben from Dover

[Executive Sadman]

I've never paid a water bill in my life accept for when we lived in dubai. As I see it it is a human right and something that is provided plentifully in the UK by nature. Its the same with TV licenses, just cause they send you a bill doesn't mean that they are in the right

edit to point out that i'm not saying tv license is a human right, just that your a mug if you pay for one

A certain amount of it maybe. Relative of mine wasnt metered and used to run a swimming pool and sprinklers to ensure his entire 1.5acre plot was lush and green throughout the driest/hottest of summers. Hardly responsible.

[erranta]

<br />A certain amount of it maybe. Relative of mine wasnt metered and used to run a swimming pool and sprinklers to ensure his entire 1.5acre plot was lush and green throughout the driest/hottest of summers. Hardly responsible.<br />

<br /><br /><br />

We are awash with free water in this country.

Water companies "UP NORTH" have fleets of hundreds of water tanker lorries, emptying our reservoirs and filling water carrier tankers at the ports to flog off to ?

They then impose hosepipe bans as soon as the sun comes out!

This needs major investigation by a decent journalist/TV reporter!

[Executive Sadman]

<br /><br /><br />

We are awash with free water in this country.

Water companies "UP NORTH" have fleets of hundreds of water tanker lorries, emptying our reservoirs and filling water carrier tankers at the ports to flog off to ?

They then impose hosepipe bans as soon as the sun comes out!

This needs major investigation by a decent journalist/TV reporter!

Resevoirs cost money to build and maintain, purification costs money, pipes cost money to build and maintain. Its not about water, its about getting it to your house in a drinkable state.

You want 'free' water, go down to the river with a bucket.

[Mrs Bear]

Are we all missing a trick here? Do people just not bother paying it and nothing happens? Not that I have a water bill personally, its included in my rent.

Don't know whether they do it here, but in some countries where they're not allowed to cut you off altogether, they just cut the pressure so that when you turn the tap on it trickles rather than gushes. Enough for basic needs, but a pain in the a*se to live with.

[RufflesTheGuineaPig]

Resevoirs cost money to build and maintain, purification costs money, pipes cost money to build and maintain. Its not about water, its about getting it to your house in a drinkable state.

You want 'free' water, go down to the river with a bucket.

We had plenty of reservoirs and filtration facilities, the water companies merely closed them down and sold the land off. now we have water shortages because of lack of reservoirs.

If this were china, the people who closed down the reservoirs and sold the land off would be arrested and shot for treason and crimes against the people.

[Dr Elk]

Resevoirs cost money to build and maintain, purification costs money, pipes cost money to build and maintain. Its not about water, its about getting it to your house in a drinkable state.

You want 'free' water, go down to the river with a bucket.

not to mention the cost and infrastructure for getting rid of waste water.