Guildford’s New MP Urges Ofwat to Reconsider Water Bill Rises

Published on: 16 Jul, 2024
Updated on: 17 Jul, 2024

By Martin Giles

The first Parliamentary motion Zöe Franklin will be backing since being sworn-in as the MP for Guildford constituency last week urges Ofwat to reconsider water bill rises. 

Her decision is in line with her stated priorities given in her interview immediately after the election result was announced.

See: General Election – Lib Dems Win Guildford with a 8,500 Majority

The motion, proposed by Liberal Democrat Treasury spokesperson Sarah Olney MP, will be presented once the King has re-opened Parliament tomorrow (Wednesday, July 17).

Water price increases were announced last week. They vary by region, with Thames Water customers facing an increase of £99 or 23 per cent over the next five years making the average annual cost to households rise to £535 despite, says the Lib Dem’s press release “water firms being allowed to dump raw sewage into local waterways”.

But the price hike is less than water companies had been requesting. Thames Water’s proposed an increase of £191 by 2030.

Ofwat said Thames Water must provide a “delivery action plan” and regularly report on progress, assessed by a third party.

Thames Water is at risk of having the credit rating of its debts downgraded by S&P Global, the ratings agency, said on Thursday.

According to Ofwat, since privatisation 30 years ago, firms have paid out £53 billion in dividends, but have also invested more than £200 billion in infrastructure.

However, in 2023, sewage spills into England’s rivers and seas more than doubled.

Zöe Franklin MP

Zöe Franklin MP said: “Long before the General Election campaign, the Liberal Democrats called for Ofwat to be abolished and to be replaced by a new water regulator with the powers to bring the change we and our environment need.

“Meanwhile, Ofwat must use its existing powers to crack down on these huge rises in water bills. We are also continuing to push for the government to implement a ban on water company executive bonuses until sewage discharges end and leaks are fixed.

“For years, people across Guildford and our villages have told me they want an MP who will take a stand.

“I stood for election on my pledge that I will do what is best for Guildford and our villages. I am proud to say my first Parliamentary Motion signature will be to stand for all my constituents, to stand for us all, against failing Thames Water and against its appalling water bill hike.”

Anne Rouse, Guildford Labour chair

Chair for the Guildford Constituency Labour Party Anne Rouse, responding to the Lib Dem announcement, said:

“Over the last fourteen years of water privatisation, the business model has been to direct profits to shareholders, rather than into upkeep or the public good. Now, under a Labour government, we can ensure that funding is always there for necessary maintenance to prevent the sewage spills that have polluted our rivers relentlessly.

“Environment Secretary Steve Reed is backing these forward steps from Ofwat, to ensure new funding is ring-fenced for vital infrastructure and can only be spent on upgrades benefiting customers and the environment.

“Zöe Franklin’s statement does not take into account the spending crunch that the Labour government has inherited, and we can’t be unrealistic with what we expect of the water companies. Let’s fix our waterways, one step at a time.”

The Parliamentary Motion to be submitted by Liberal Democrat Treasury spokesperson Sarah Olney MP is: “That this House regrets the large increases that have been proposed to consumer water bills; notes that water companies continue to dump sewage into local waterways; believes as a point of principle that it is unfair for water companies to make consumers bearing the brunt of the costs for improvements to infrastructure when companies have paid out millions to shareholders in profits and in bonuses to directors and executives; and calls on water companies to ensure water bills make clear to customers where their money is being spent.”

Guildford Conservatives were also invited to comment.

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