Maria Eagle, the shadow environment secretary, said that Ofwat should intervene when monopoly water providers failed to limit price rises or cut bills in circumstances where they have benefitted from “better than expected financial circumstances beyond their control”.
In addition, Eagle called for an amendment to legislation that required all water companies to introduce a national affordability scheme to help those struggling with their bills.
This she said, would end the current “postcode lottery whereby companies choose whether to offer a social tariff.”
“The water companies are making eye-watering amounts of money while customers face some of the highest bills in Europe. Yet all we have seen from the Government is a single weakly worded letter to water bosses begging them not to hike bills again next year. That is simply not good enough and families deserve better,” said Eagle.
“Labour would be taking tough action to bring the rising cost of water under control. We would strengthen Ofwat’s power to reopen price settlements to cut bills where companies are making excessive profits and force all water companies to support a national affordability scheme to help those struggling to pay their bill,” she added.