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Doublethink In Action Water Bills To Fall By 5% By 2020, Ofwat Says

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http://www.bbc.co.uk/news/business-30444592

Household water bills in England and Wales will fall by an average of 5% - not including inflation - by 2020, the regulator Ofwat has ruled.

This would see average bills fall in real terms by about £20 from £396 to £376.

However, consumers will still pay more, as the companies are allowed to add on inflation, as measured by RPI.

RPI is typically higher than CPI inflation, and is currently running at 2.3% a year.

Nevertheless the Consumer Council for Water (CCW) said it was good news for consumers.

"Most water companies and the regulator have listened to customers and delivered a deal which reflects the services they want, at a price most find acceptable," said Tom Smith, the chief executive of the CCW.

Genius water bills are going down by actually going up with inflation.

The Ministry of Truth lives.

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I saw this report on the BBC news and the doublethink was strong in the report.

will fall by an average of 5% - not including inflation

Nominal does not include inflation in the calculation; real terms includes inflation.

Graph%20of%20price%20of%20House%20Prices

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Of course there's a general election in the offing and UKIP trounced the LibLabCon in the recent by-elections - so there'll be plenty of spurious claims by the incumbents' chums between now and the election.

If the water companies were to drop their prices now by the publicised amount and then increase the reduced prices by inflation then it would evidently be a transparent reduction. Is that going to happen?

However as it seems to be a future reduction (by 2020 :lol: - you have to laugh) and they're still allowed to increase the current level of bills by inflation it sounds like through the looking glass regulation again. They'll just fiddle the figures and as time goes on there'll be all manner of excuses and people will end up paying what they would have paid anyway.

Edited by billybong

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Nevertheless the Consumer Council for Water (CCW) said it was good news for consumers.

"Most water companies and the regulator have listened to customers and delivered a deal which reflects the services they want, at a price most find acceptable," said Tom Smith, the chief executive of the CCW.

For sure CCW (Consumer Council for Water) seems to have a useful role for consumers but it might have been helpful to consumers if the CCW had gone into some detail to explain how the deal will actually be delivered and how they'll be able to prove that there's been the claimed price reductions because at the moment it looks like it'll be easy for the companies to avoid delivering real reductions (by 2020) possibly through various accounting strategies.

CCW (Consumer Council for Water) was set up by Act of Parliament and although they claim to be funded by consumers in fact that link is so indirect to be almost meaningless as consumer money goes to the water and sewerage companies then to Ofwat and then to government agencies (CCW's "sponsors") who then pay CCW. So it's effectively funded by the water and sewerage companies, the regulators and the government - a similar arrangement to most if not all of the regulatory bodies themselves although CCW isn't termed a regulator.

CCW is effectively part of DEFRA as well as part of the Welsh government - although CCW claims to be independent. The government effectively pays CCW's wages and expenses etc and the consumer has little or no say in the matter nor for that matter in how CCW is actually run.

https://

www.gov.uk/government/uploads/system/uploads/attachment_data/file/246743/0230.pdf

Funding and Classification
The joint sponsors of the organisation are the Department for Environment, Food and Rural Affairs (DEFRA)
and the Welsh Government. CCWater is funded by water consumers through a charge to water and sewerage
companies in England and Wales by Ofwat. The amount is then passed to DEFRA and Welsh Government.
CCWater draws its funds through Grant in Aid from DEFRA and is included in DEFRA’s accounts.
For policy and administrative purposes CCWater is classified both as an executive non-departmental public body of DEFRA and a Welsh Government sponsored public body. For national accounts purposes, CCWater is classified as part of the central government sector.
Edited by billybong

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So basically tapwater is going to get more expensive, but other things are going to get more expensive more quickly, therefore consumers will be better off. Right.

The Establishment's belief that ordinary people are infinitely gullible will be its undoing.

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