Water smart cards outlawed by High Court

Lancashire County Council, supported by local councils throughout the county, yesterday won its battle against the system which allow water companies to disconnect customers without going through the courts.

The action was taken against water regulator Ofwat, which had approved the use of pre-payment devices by companies including North West Water.

Unless there is an appeal, the company will have to begin removing the 1,300 meters which have been fitted in the region.

Lancashire County Council deputy leader Frank McKenna said: "We have said all along that companies should not have the power to disconnect for debt.

"Water pre-payment devices hit and hurt the vulnerable, especially the elderly, low paid and unemployed." Blackburn with Darwen environment services chairman Mike Barrett said: "This judgment justifies the stand the council has taken over the past two years in opposing this method of payment."

Hyndburn councillor Bill Goldsmith said: "I'm delighted that at last common sense has prevailed and the High Court has seen our point of view on the health hazards."

The decision to outlaw the devices, known as Budget Payment Units, followed accusations by local authorities that the units allowed customers who were behind with payments to have their supplies disconnected easily.

The smart cards, similar to electricity charge keys, are charged up by payments which are usually made at post offices.

An Ofwat spokeswoman said: "It is disappointing that the rules, as declared by the court, will shut out a payment method that has proved both popular and useful to the majority of its users.

"We will make no further comment until we have fully considered the judge's conclusion."

A statement from North West Water said: "If there is no appeal we will consider our position in discussion with Ofwat."

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.