New rules mean firms will have to hand out compensation equating to double the current amounts for problems such as water supply outages, sewer flooding or low water pressure.
Following a public consultation, issues like low water pressure could see payments of up to £250, compared to the £25 currently available. Payments for internal flooding from sewers could rise to £2,000 or more, compared to £1,000 under the current rules.
The Department for Environment, Food and Rural Affairs (DEFRA) pointed to several recent incidents where households would now be in line for much higher payments.
For example, following a supply interruption in South Staffordshire last month as a result of a burst water main, compensation for residents was not compulsory. But under the new regulations, this incident could have warranted payment of £150 for households and £300 for businesses.
During a recent water quality incident in Brixham, Devon, following an outbreak of cryptosporidium, there was no statutory entitlement to compensation for those affected. But under the new rules, customers could be entitled to at least £10 per 24 hours.
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‘The public deserve better compensation’
Steve Reed, Secretary of State for Environment, Food and Rural Affairs, said: “Customers have too often been let down by water companies, with supply cut off, low water pressure and, in some cases, even contaminated tap water. We are clear that the public deserve better compensation when things go wrong, so I’m taking action to make sure that happens.
“This is another step forward in our plans to [reform] the water sector so it serves customers and the environment better.”
Payment rates when water service standards are not met have remained unchanged since 2000. When supply interruptions take place, some water companies voluntarily offer compensation for their customers. However, there is no statutory requirement to do so, and compensation rates can vary significantly among companies and regions.
The changes will see the list of circumstances that can trigger compensation expanded to include when ‘boil notices’ are issued by water companies when drinking water quality standards drop, or when firms fail to conduct meter readings or installations as promised.
Mike Keil, chief executive of the Consumer Council for Water (CCW), said: “The current Guaranteed Standards Scheme [GSS] is not fit for purpose, so we welcome the swift action the Government has taken to bring about long-overdue improvements.
“The increased payment levels when things go wrong, alongside fewer reasons for companies to avoid making payments, means that there are far greater incentives for water companies to get things right first time. The overhaul of these standards marks a step forward in improving consumer protection and repairing fractured trust in the water sector.”
The GSS establishes baseline expectations for customer service in the water sector, including timely restoration of water supply after interruptions, prompt responses to written complaints, and effective management of sewer flooding risks.
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