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New rules announced to protect vulnerable water customers

New rules announced to protect vulnerable water customers
Rebecca Goodman
Written By:
Rebecca Goodman
Posted:
14/12/2023
Updated:
14/12/2023

Water providers have been set new guidelines to follow when dealing with vulnerable customers.

The guidelines from Ofwat include firms identifying customers who may have extra needs and developing and implementing vulnerability strategies.

The regulator said these are minimum standards that must be met to help those who need extra support including those who are ill, have a disability, or those with mental health problems.

The new set of guidelines from Ofwat also state that water providers need to provide a high standard of support for vulnerable customers, they must identify and record their needs, and “develop services that are inclusive by design.”

Firms must actively help vulnerable customers

Companies should also be proactive with vulnerable customers such as by data sharing with other firms to reduce the amount of communications sent out.

It comes as almost a third of disabled people said they have been financially hit by not being able to access essential service providers.

The new guidelines follow a consultation period between Ofwat and over 30 organisations including Scope and Age UK.

A new customer-focused licence condition is also set to be introduced next year. The aim of this is to “encourage high standards of customer service and support for the full diversity of customer needs”.

Companies will need to show that they are fully considering vulnerable customers in order to be granted and to keep a licence to operate.

In a document published today Ofwat wrote: “Our new licence condition will set out our expectation that customers’ needs and expectations, including those who are in vulnerable circumstances, should be identified, understood, and met by water companies in their customer service offerings. We will be issuing further guidance to illustrate our expectations of companies in this area.”

Lynn Parker, senior director for casework, customers and enforcement said: “With customer bills likely to rise, it is vital that companies redouble their efforts to improve the service they offer, especially to those who are most vulnerable.

“This new guidance makes clear the level of support we expect all companies to provide to customers who may need extra help for whatever reason. If they do not do so, we will take action and hold them to account.”

Caroline Abrahams, charity director at Age UK, said: “Ofwat’s new guidance is a welcome step towards better support for older people with vulnerabilities across the water sector. Telephone bill reading, more adaptable communications, and proactive identification of customer needs are all welcome expectations from the regulator. We are also pleased to see Ofwat encourage bottled water deliveries during an emergency for customers with vulnerabilities. This will provide much needed reassurance to many older people unable to collect from distribution centres during an outage.

“As with all new guidance successful implementation will be key. Attention now shifts to the water suppliers who have a duty to follow these new rules and we encourage Ofwat to carefully monitor compliance.”

Half of households struggle with household bills

The regulator has also found that half of bill payers, and 65% of those with long-term illnesses, health conditions or a disability, have struggled to pay their household bills over the last year due to rising prices. This is a fall from 56% in March 2023.

There was also a slight drop in the number of people who said they were currently struggling to pay their bills, to 18% from 23% earlier this year.

One of the major issues is that people are unaware of the support available to them and fewer than three in 10 are aware of financial help that may be available while 6% are receiving some help towards their water bill.

Just over a quarter said they would be concerned by an increase of £5 to their monthly bills, rising to 33% for a £10 increase. Yet, both energy and water bills which make up a significant percentage of household bills, are set to rise in 2024.

Ofwat said it is encouraging customers who are struggling to pay their water bills to contact their providers for help at the earliest opportunity.