Annex A
TERMS OF REFERENCE FOR THE WALKER REVIEW
OF CHARGING FOR HOUSEHOLD WATER AND SEWERAGE SERVICES
To examine the current system of charging households
for water and sewerage services, assess the effectiveness and
fairness of current and alternative methods of charging and consider
and make recommendations on any actions that should be taken to
ensure that England and Wales has a sustainable and fair system
of charging in place. It will look at social, economic and environmental
concerns.
In order to reach its conclusions the review will
assess:
— the effectiveness and fairness of
methods of charging, given current trends in water metering and
the use of the rateable value based system;
— the appropriate pace of change and
method of moving to near universal metering needed to ensure sustainable
abstraction in areas of water stress, taking into account:
— the current projections
of growth in metering; and
— the proposals brought forward
in water resources management plans;
— the effectiveness of different types
of innovative social, rising block, seasonal and other tariffs
in helping vulnerable households and/or reducing demand;
— the effectiveness of measures to
manage affordability concerns for low income households within
the current or any future system of charging, including the role
of water efficiency measures and potential links between water
and energy efficiency measures and existing Government initiatives;
— the cost and benefits of metering,
taking into account all costs including the full social cost of
carbon, and the cost effectiveness of different approaches to
metering;
— the impact on health and health inequalities
for individuals, communities, areas and social groups, of current
and alternative methods of charging;
— the costs and benefits of smart metering;
and
— the effectiveness of measures to
incentivise people to pay for their water and sewerage services
and minimise the impact of bad debt on customers that do pay,
excluding disconnection.
The Review will advise on options for a new
framework for charging if recommended and implications for legislation
or guidance needed to achieve changes from current arrangements.
The review will include a robust evidence base
that will support the development of future policy and Impact
Assessments.
The review will report to the Secretary of State
for Environment, Food and Rural Affairs and Welsh Ministers.
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