Question to the Department for Environment, Food and Rural Affairs:

To ask Her Majesty’s Government what assessment they have made of the impact of bad debt on (1) household, and (2) non-household, water bills in each of the last three years.

In December 2015, Ofwat, the independent economic regulator of the water sector in England and Wales, published its most recent assessment of affordability and debt in the water industry (Affordability and debt 2014-15). Ofwat’s report assessed the level of debt within the industry, the costs associated with recovering and writing debt off, debt recovery practice and the support available for customers.

The report identified that the costs associated with recovering and writing off water debts are the equivalent of £21 per year to every household customer in England and Wales. This is an increase from 2009-10, when the amount was £15 (£17 in 2014-15 prices) per year.

Ofwat has not assessed the cost for non-household customers.