Part of the debate – in the Senedd at 5:00 pm on 28 September 2022.
As such, CCW, previously known as the Consumer Council for Water, is therefore calling on both the Welsh and UK Governments to implement a single water affordability scheme to cover England and Wales, to ensure that nobody struggles to pay their water bill. And I would like to take this opportunity to encourage the Welsh Government to support a universal affordability scheme right across England and Wales, and to work with CCW, the Department for Environment, Food and Rural Affairs and the UK Government in helping to achieve this. I am aware that the UK Government has established a working group to explore the viability of a single water affordability scheme and are planning to consult on the proposal, with the proposed scheme being funded from a central pot and helping to ensure that costs do not fall disproportionately on those geographical areas with the biggest water poverty problems, such as Wales. In fact, modelling suggests that a single industry scheme would be likely to reduce current average cross-subsidies on water bills in Wales, whilst delivering more comprehensive support, and I would therefore advocate in the strongest possible terms for Welsh Government Ministers to fully engage with this consultation and proposal.
In addition to this affordability scheme, I'd also like to urge this Government to encourage water companies in Wales to launch co-ordinated campaigns at a national level to inform people of the support that is already available to them, and to make water-related assistance more visible through other advisory agencies, such as the citizens advice bureaux. I believe that this would be a valuable step in helping people across Wales, especially since evidence has shown that people who are struggling with debt and are financially vulnerable take on average over two years to seek help and, as a result, their financial troubles very often manifest into mental health issues. In many cases, these struggles could have been avoided with earlier intervention and an awareness of the affordability and debt write-off schemes that are available to them. I would like to remind this Government and Members here that it's in everyone's interest that those struggling to pay water bills get the help and support they need as quickly as possible, not only because it helps them to alleviate the worry and stress that comes with struggling to afford bills and manage household finances, but because the debt that they incur is often reclaimed by water companies through higher bills to other customers, who may themselves be struggling as well.
Turning to land and waterway management and issues affecting our natural environment, like climate change, we know that water companies have a duty of care to maintain and look after parts of our natural environment, and the money that's needed to do this comes from bill revenue. If a situation is created whereby water companies are starved of revenue because of too high a debt write-off, then it reduces the money available for companies to manage assets, which can unfortunately lead to many of the environmental issues we are hearing in this Chamber. In Wales, and across the United Kingdom, substantial investment in water and sewerage networks is needed to ensure that they can withstand the pressures of a changing climate and growing population, for the development of new sources of water and to continue to reduce leakage and wastage from the network. It is imperative that people on low incomes have the support they need to keep bills affordable.
As my colleague Peter Fox pointed out in his question to the First Minister last week, Wales is now officially in drought following the driest five-month period in 40 years, which saw Wales receive just 61 per cent of its expected annual rainfall between March and July. As a population, we therefore need to think very carefully about how we use water. The National Infrastructure Commission England, NIC, recommends that, in order to address the growing gap between supply and demand, one third of water demand can be reduced by helping and encouraging people to change their behaviour and use less water. The NIC also suggests that reducing water could be the most cost-effective action taken to adapt to climate change, and the introduction of universal smart metering would be cost neutral. I would therefore challenge the Welsh Government to ensure that NRW's drought-planning measures include public communication and education on how best to use water, especially since we are likely to experience drought weather more often, and ask them to highlight any initiatives they are planning for the future. Moreover, I would also like to support CCW's call for a thorough assessment of water resources in Wales and the resilience of supply infrastructure, and for this to be prioritised in future National Infrastructure Commission for Wales work programmes.
I believe that, in Wales, there is an undercurrent of public opinion that considers water as excessively abundant and, therefore, we do not need to be mindful of any supply issues. However, this is not necessarily the case. Although Wales is a nation where we have plenty of rainfall, we do not have the capacity to store large amounts of water, because, historically, we have never needed to. Unless we are going to spend vast sums of money increasing our water retention capability, we need to prioritise changing public behaviour and attitudes.
The Welsh Government, in my mind, needs to pay more attention to exploring ways in which people can be encouraged to reduce demand on supplies by helping consumers to change their behaviour. To complement this, I believe more can be done to encourage innovation and provide further water-efficient products, which will make it easier for people to save water.
I would further like to ask the Welsh Government how they have pressed water companies to accelerate response times to visible leaks. This is particularly important at a time when people are being asked to conserve water because rainfall rates have been low. Showing a determination to address leakage will help encourage people to make everyday changes to their own water use.
As my final point, I want to briefly discuss river water quality and storm overflows. This is not just a Welsh problem but one that affects the United Kingdom as a whole, and I believe that it is imperative that we have a collaborative working approach with the UK Government and all water companies to improve water quality and, in particular, stop overflow of sewage into rivers.
Despite the numerous explanations as to why storm overflows are a necessary part of sewerage infrastructure and a comparatively low number of events, I cannot believe that, in the twenty-first century, we are still polluting our rivers and coastal waters with sewage. Not only is this harmful to the environment and potentially dangerous to bathers, but the perception that it gives to tourists and the Welsh population is that we do not care about our environment, which, as we all know, cannot be further from the truth.
With increasing public interest in the impact of storm overflows on environmental water quality, I believe that the Minister should support the National Infrastructure Commission in extending its work in reviewing a raft of recommendations for the improvement of waste water infrastructure resilience, with the outcome of alleviating flood risk for our communities, ensuring resilient sewerage services and protecting the natural environment, whilst also preserving local economies.
I would like to conclude my contribution by saying that we have some serious challenges to the water industry in Wales, both in terms of helping people to afford their bills and in upgrading the water and sewerage network to provide greater resilience against climate changes and to reduce the impact of sewage on our environment. Whilst I recognise that a lot of very good work goes on, we nonetheless need to be mindful that there needs to be greater purpose in that work and an urgency in its delivery. Thank you, Dirprwy Lywydd.