The government has launched a consultation to double reimbursement for water company customers when their basic water services are hit.
Under new plans, households and businesses will be entitled to higher compensation rates from water companies, and in a wider range of circumstances when basic water services are hit.
The new proposals set out by Secretary of State for Environment, Food and Rural Affairs, Steve Reed, will double the amount of reimbursement that customers are legally entitled to when key standards are not met by water companies.
Subject to an eight-week consultation, government proposals will double payments for all existing standards and will more than double the payments for certain highly disruptive incidents, such as failing to provide notice of supply interruptions and missing arranged appointments with customers.
The government will also expand the list of circumstances that can trigger compensation, including automatic payments for boil notices when drinking water standards drop, or when water companies fail to conduct meter readings or installations as promised.
Secretary of State for Environment, Food and Rural Affairs, Steve Reed said:
“Our water industry is broken. After years of failure, households and businesses have been let down by water companies time and time again.
“The new Government will clean up the water industry and turn the tide on the destruction of our waterways ensuring water companies protect the interests of their customers and the environment.”
Welcoming the launch of the consultation, Jenny Suggate, Director of Policy, Research and Campaigns at CCW, said:
“We’re delighted the government is fast-tracking efforts to improve the Guaranteed Standards Scheme, with the potential to boost compensation and support for hundreds of thousands of people each year when they are let down by their water company.
“Given that there has been little change to the standards since they were first introduced, an overhaul is long overdue, and we know it is a pressing priority for household and business customers.
“Demanding higher standards of service and improving levels of compensation when things go wrong will incentivise water companies to get things right the first time for all customers.”
Based on an average annual water and sewerage bill of £440, this would mean the minimum payment of at least £40 under all proposals would now represent around 10% of the average annual customer bill, with several higher payments worth at least a quarter. An issue like low pressure could see payments of up to £250 and payments for internal flooding from sewers of up to £2000.
The standards, outlined in the Guaranteed Standards Scheme, set out a baseline for customer service in the water sector. They include providing timely restoration of water supply following an interruption, responding to written complaints and managing the risk of sewer flooding. Levels of reimbursement for when these standards aren’t met have remained the same since 2000.
The proposals to significantly increase reimbursement reflect the need to uprate payments in line with inflation and recognise the significant impacts of recent water supply disruptions on communities like those seen this year in Hastings, Brixham and Bramley.
