In a wide-ranging speech which took tackled water companies on affordability and tax, shadow environment secretary Maria Eagle told the Labour party conference in Manchester that her party would offer consumers a “new deal”
In her keynote speech, Eagle said: “We will reform the industry, creating a national affordability scheme – compulsory for all the water companies – to help people struggling to pay their bills wherever they live in the UK.”
Currently, water companies have to win the backing of customers before introducing social tariffs – and have in several instances failed to do so.
Eagle added that a Labour government would also grant Ofwat more powers to “modify the terms of water company licences”. She said the current licence system, which was created 25 years ago when the industry was privatised, has resulted in “increasingly exploitative behaviour by some”.
The shadow environment secretary attacked the level of profits water companies have made, claiming money was being “siphoned off” to shareholders and private owners. She cited £1.8 billion paid to shareholders, and only £74 million paid in tax in 2013.
Eagles said: “Rather than make companies support customers struggling to pay unaffordable bills, David Cameron has allowed to simply siphon money off year after year after year.”