TRP Questions & Answers

• Why are you introducing these increases?
• You say 6,000 customers will see their bills go down, but what about the other 19,000?
• Who will pay more?
• There was some debate a few years ago when Guernsey Water attempted to increase water charges above the rate of RPI. The States voted against a large increase over RPI in one year and instead voted for the increase to be spread over three years. Is this not another way of doing just that?
• You have been encouraging people to switch to meters and now you want to penalise them by putting up their charges. Is that fair?
• Can I change back to TRP after changing to a meter?
• You are yet another utility putting its prices up! 
• Your standing charge is higher than gas or electricity – why?
• Why is there a difference in the standing charge now?
• What am I going to have to pay?
• What does the standing charge include?
• Are customers charged for a meter?
• If someone has just moved into a property that has a meter and doesn't want to be charged by meter – can they change?
• How has TRP been measured?
• Do you use all the TRP points?
• What is TRP and why is it different to RV?
• Aren’t you going to meter everyone anyway?
• Can a customer in a block of flats with a common meter have their own?
• What is the timescale to fit a meter?
• Why use TRP for billing?
• Where is the meter fitted?
• My TRP is wrong!
• What about customers on check meters – can they go back to being charged by TRP?
• How far do you go back when changing from a check meter to a charge meter?
• I didn’t know I had a check meter!
• If I get a leak when I’m on a meter, do I have to pay the costs?
• Can I buy a meter rather than renting one?
• Why wasn’t this debated by the States of Guernsey?
• Why can’t the standing charge be lower, as it is in Jersey?

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Why are you introducing these increases?

Firstly not everyone is going to see an increase in their water bills; in fact around 6,000 customers, including many of those in social housing, are going to see their bills go down. The other important point is that overall the amount of money that Guernsey Water will receive is not increasing, other than by the usual RPI increase (which is 4.8% in this case).

However, the way that bills are calculated is going to change from January next year, because we have had to review water charges following the States' decision to replace the old rateable value system with the new Tax on Real Property, or TRP, which came into effect this year.

In the past, water bills for 11,500 of our customers who are still on an unmetered supply were calculated using their property’s rateable value, but now we have to switch to the new TRP system. That is not something we have any control over, but as it means we have to go through a major exercise to change the way many bills are calculated, it was the appropriate time to look at all our charges and ensure that these are fair for all our customers.

We will be sending out leaflets to all customers in the coming weeks explaining the changes and how these affect them, and they will be able to contact us to discuss any specific enquiries. 

You say 6,000 customers will see their bills go down, but what about the other 19,000?

All customers pay a standing charge, which essentially is to cover the fixed costs of providing customers with a connection and maintaining the production, delivery and quality of a drinkable water supply. In addition there will be a per unit charge, which for unmetered customers will be based on their TRP and for those with a meter will be based on the amount of water they consume.

We have taken this opportunity to make the standing charge for metered and unmetered customers exactly the same (i.e. the metered standing charge is increasing and the unmetered charge is decreasing), and the additional per unit or consumption charges have been calculated to provide Guernsey Water with the same income that it currently receives under the old system, save for the usual annual RPI increase.

With the changeover there will be some who pay more and some who pay less, but overall it is income neutral to Guernsey Water and ensures that we have sufficient funds for investing in the water network. Guernsey Water is entirely self-funding, and receives no income from the States so the cost of our operations comes solely from water charges. 

Who will pay more?

Because customers with a meter will see their standing charge increase, they will pay around 50 pence per week more; however they will still pay on average around 10-12% less than an average unmetered customer, which reflects the fact they use about 10–12% less water.

Those people with a query on an unmetered supply can only be dealt with on an individual basis because the changeover from rateable value to TRP affects properties differently. We will be sending out leaflets to all customers to advise them of the changes, and customers will be able to get in contact with us to discuss their individual charges.

One thing which we have done in preparation for the changeover is to identify those customers who will be most adversely affected by the switch from rateable value to TRP, and we have begun to install meters on those supplies, so that if these customers want to switch to a metered supply, they can do so instantly.

Anyone can apply for a meter, and we will install them on a first come, first served basis. 

There was some debate a few years ago when Guernsey Water attempted to increase water charges above the rate of RPI. The States voted against a large increase over RPI in one year and instead voted for the increase to be spread over three years. Is this not another way of doing just that?

No. Guernsey Water’s income from water charges, other than the annual RPI increase which was approved by the States some years ago, will stay the same. 

You have been encouraging people to switch to meters and now you want to penalise them by putting up their charges. Is that fair?

The change from rateable value to TRP was a decision by the States and as a result we have been forced to review the way that we calculate our bills. What we are looking to do is introduce a system that is fair for all customers, and having a metered supply will on average still be cheaper than an unmetered supply, even after the new system has been introduced.

At Guernsey Water we are committed to universal metering as the most appropriate form of charging and over time we all customers will switch to this form of charging. 

Can I change back to TRP after changing to a meter?

No. Guernsey Water is committed to universal metering, as it is the most equitable way of charging for water usage, and therefore would not allow a customer to revert back to paying by TRP once a meter had been installed. It is also unlikely to provide any benefit because on average customers on a metered supply pay less because they use on average 10-12% less water, and that will still be the case after these changes are introduced. 

Metered water helps us all manage this precious resource more carefully.

You are yet another utility putting its prices up!

Some people will see their bills go up but someone people will see their bills go down, and the net effect will on Guernsey Water’s income will be neutral.

Guernsey Water will have to strive to be even more efficient as the costs of water treatment and distribution are increasing due to chemical and material costs way above inflation. This is why other UK companies are having to increase their charges.

The change from RV to TRP has had an unavoidable impact on Guernsey Water. Guernsey Water has worked hard to ensure that it receives the same amount of income from the new charging system, and to ensure the new charges are as fair as possible to all customers, although inevitably there will be winners and losers.

Your standing charge is higher than gas or electricity – why?

We can’t comment on how other utilities charge, but our standing charge is set at a level that allows us to:

- provide customers with a connection to the water supply, and

- maintain the production, delivery and quality of a drinkable water supply network.

If Guernsey Water were to reduce the standing charge, then the usage charge would increase enormously to compensate, resulting in higher bills for the majority of customers.

Why is there a difference in the standing charge now?

Some years ago, to stimulate the move to meter, the States Water Board took the decision to reduce the standing charge for metered customers. As percentage increases were added over the years, the gap between the metered and non-metered standing charges has increased.

What am I going to have to pay?

A leaflet with details will be sent to all customers.

What does the standing charge include?

The standing charge that you pay contributes towards Guernsey Water’s fixed costs incurred through:

- providing customers with a connection to the water supply, and

- maintaining the production, delivery and quality of a drinkable water supply network.

Are customers charged for a meter?

No, the meter and installation is free.

If someone has just moved into a property that has a meter and doesn't want to be charged by meter – can they change?

Once a property is on a meter it has to remain that way.

Guernsey Water is committed to universal metering, as it is the most equitable way of charging for water usage, and therefore would not allow a customer to revert back to paying by TRP once a meter had been installed. However it is unlikely to provide any benefit because on average customers on a metered supply pay less because they use on average 10-12% less water, and that will still be the case after these changes are introduced. 

How has TRP been measured?

This was done by the Cadastre.

Do you use all the TRP points?

No - we decided that for water charging it was fairer to use the domestic environment TRP data only, which excludes land and outbuildings. See below:

The lines in red are the details GW uses.

What is TRP and why is it different to RV?

TRP is based upon the size of a property, whilst RV was based upon the notional ‘rentable income’ that could be derived from the property. As such, RV was a subjective view of a property’s potential rental income, whilst TRP is an objective measurement backed up by hard data.

Aren’t you going to meter everyone anyway?

Guernsey Water has the strategic objective of everyone being charged for water usage by meter ultimately. Already 13,500 of our 25,000 customers are metered (at the time of writing), although it will take some years before everybody is metered.

Can a customer in a block of flats with a common meter have their own?

It is only possible to meter for charging purposes a single supply into a property where the plumbing makes this possible. In the case of flats each flat would require its own supply pipe from the main going into the building.

What is the timescale to fit a meter?

Our target standard, as outlined in our customer charter, is 21 days from receipt of the application. However, depending on demand, we may be able to do this sooner.

Please bear in mind though, that Guernsey Water are expecting a significant number of customers to apply for meters due to the TRP change, so the timescale for fitting a meter in the first few months may be a bit longer than usual.

Why use TRP for billing?

In the absence of a metered supply the only other way is by RV, which in 2009 will change to TRP. The management of the RV system will cease shortly.

Where is the meter fitted?

The meter is usually fitted in the road or pavement adjacent to your property. It is connected to our supply pipe.

My TRP is wrong!

In that case, you must contact Cadastre.

What about customers on check meters – can they go back to being charged by TRP?

Customers who have a check meter fitted are still charged using RV, and unless they tell us they want to switch to a metered supply, they will be charged from January according to the TRP of their property. However we would encourage them to switch to a metered supply because on average they will pay less than the unmetered customer, to reflect the fact they use around 10-12% less water. That will still be the case even after the changeover. 

How far do you go back when changing from a check meter to a charge meter?

The effective change date is the date a request was made by the customer - historic usage is not used.

I didn’t know I had a check meter!

When a check meter is installed we always drop a card informing the customer that a check meter has been fitted.

If I get a leak when I’m on a meter, do I have to pay the costs?

This depends on the circumstances - there are concessions that can be made, but certain criteria need to be met.

Can I buy a meter rather than renting one?

The meter is installed on Guernsey Water’s equipment and remains the property of Guernsey Water. There is no rental charge for a meter, only a standing charge that applies to all customers.

Why wasn’t this debated by the States of Guernsey?

The States of Guernsey agreed that water could be charged using TRP in October 2007. Each year, when we increase charges a Statutory Instrument is used for the States to agree to.

Why can’t the standing charge be lower, as it is in Jersey?

For Guernsey Water to introduce a significantly lower standing charge in one go would adversely affect income and therefore the ability for the business to operate effectively. This is only something that we can introduce over a long period of time.

Guernsey Water’s standing charge is set at a level that allows it to:

- providing customers with a connection to the water supply, and

- maintain the production, delivery and quality of a drinkable water supply network.

If Guernsey Water were to reduce the standing charge, then the usage charge would increase enormously to compensate, resulting in higher bills for the majority of customers.