South West Water launches new tariff trials

Starting October 1, South West Water is set to trial two new, innovative tariffs designed to create a fairer system for billing customers while promoting responsible water use.

The Seasonal Tariff and the Summer Peak Tariff will be tested with nearly 3,500 households and businesses across Devon, Cornwall, Bristol, and Bournemouth. 

The initiative is part of South West Water’s broader commitment to finding fairer ways to charge for water, backed by regulatory body Ofwat and the Consumer Council for Water (CCW).

Excluding customers on social tariffs, the trial participants will receive ongoing support from South West Water’s team. 

Customers will also have access to water-saving resources such as home water efficiency audits. 

This proactive support aims to ensure customers make the most of the new tariffs while reducing their overall water consumption.

Dani Twelvetree, South West Water’s Head of Customer Communications and Engagement, said: “We understand that our customers are looking for fairer ways to be charged for their water usage. These new tariffs are a direct response to that feedback, offering more control over bills and encouraging year-round water efficiency.”

The Seasonal Tariff offers lower water rates during the cooler months of October to March when demand is typically lower. 

However, as water consumption increases during the warmer months, the tariff will adjust, charging higher rates to reflect the additional costs associated with water storage and supply during these times of peak demand.

The Summer Peak Tariff takes a different approach, encouraging reduced water usage in the summer months when resources are under greater stress. 

Customers will be charged a lower base rate, but if they exceed a certain usage threshold, the cost per unit of water will increase. 

Both tariffs aim to reward customers who are able to conserve water, especially during periods of heightened demand.

These trials not only address customer concerns about fairer pricing but also aim to safeguard the region’s natural environment. 

By encouraging water conservation, South West Water hopes to relieve pressure on its reservoirs and rivers, protect ecosystems, and mitigate the risk of droughts.

Andrew White, Senior Leader at CCW, said: “It’s great that South West Water is exploring more innovative ways of charging customers, as part of wider efforts to help people and businesses save money and protect the environment by empowering them to reduce their water use.

“Our research shows nearly half of customers have seen their finances get worse over the past year, while people also having a growing concern for the environment.”

Earlier this year, South West Water introduced a Smart Saver tariff, which offered lower rates for reduced water consumption, setting the stage for these more nuanced pricing models. These trials align with the company’s broader efforts to expand regional water resources, which include a £125 million investment in projects such as repurposing disused quarries and introducing desalination to Cornwall.

The results from these trials will provide valuable insights as South West Water works with the government, regulators, and the CCW to implement improved and more equitable billing structures across the region.