working in the water industry and having seen complaints from customers, i have to say this is a good idea. what is little understood is the amount of work and cost of actually making clean safe water.
Bills can only go up by an amount approved by the regulators.
These policies are not aimed at the genuinely poor, but at the millions of £ of bad debt owed.
I remember seeing a letter from a customer saying that they were not paying their bill as they had to buy a playstation. Not really getting the priorities in order, but then if you know you wont get cut off ,who cares?
edit – as Samuri says. People do think like that – customers who say that they wont pay the water bill as they need to pay the broadband or they will be cut off…