MP forces vote to protect customers from footing the bill for water company bailouts

In the House of Commons last night, Westmorland and Lonsdale MP Tim Farron forced a voted to protect customers from footing the bill for water company bailouts.

The Liberal Democrat amendment to the Water (Special Measures) Bill would ensure that it is creditors, rather than customers, who pay when water companies go bankrupt. 

The Bill, as currently drafted, leaves customers on the hook when a water company goes into special administration procedure.

However, the Government voted against the amendment whilst Conservative MPs abstained. 

On average, a third of customers' bills are spent servicing water company debt. 

Speaking after the vote, Tim said: “Customers should not have to foot the bill for the failings of water companies. It is incredibly disappointing that Labour and Conservative MPs failed to take the opportunity to right that wrong this evening. 

“The Government must urgently address this and ensure customers are not left to pick up the tab for the financial mismanagement of water companies. 

“The Liberal Democrats have long fought to end the sewage scandal and ensure customers get a fair deal, so I am proud that Liberal Democrats have successfully campaigned for the introduction of a single social tariff for vulnerable households.

“With bills on the rise, the government must do everything it can to support vulnerable customers in water poverty. But without a radical overhaul of the water sector, this measure alone will not be enough.”