Water supply issues? Potential for financial reimbursement of up to £2,000
In an effort to improve service accountability and redress, the UK government has announced new compensation rules for water company failures. These rules, which form part of regulatory efforts, aim to provide customers with clearer guarantees and compensation routes in cases of poor service or infrastructure failures.
Steve Reed, the Environment Secretary, has stated that water companies are letting down customers with leaking pipes, poor water supply, and low water pressure. In response, the government is working with water companies to expand the list of circumstances that will trigger compensation payments.
One significant change is the compensation for intermittent low water pressure. Customers will be eligible for £50 in compensation, up to five times a year, if the pressure falls below 0.7 bar for over an hour, on two separate occasions within 28 days. The maximum annual compensation for domestic customers is £250. Claims must be made in writing within three months of the second event.
In addition to low water pressure, customers can also claim compensation for appointment failures and other service-related issues. Fixed compensation payments of around £25 per occurrence or £50 depending on the fault type are payable up to five times each financial year, with a total capped around £2,000 annual compensation through complaints processes.
Sewer flooding response is another area where water companies will be held accountable. They aim for quick response times, such as within two hours for internal flooding reports, and provide disinfection services. Compensation standards will be tied to response times or service quality benchmarks if these are missed.
The new rules also interact with broader sector reforms emphasizing governance, transparency, and alignment of company incentives with public service outcomes. This comes after public criticism of some water companies' executive pay and performance.
Notably, a ban on bonuses for bosses of six polluting water companies is being implemented as part of the government's action. The government is also taking action to cut sewage spills and attract investment in the sector, including strengthening regulation to ensure polluting water bosses who cover up their crimes now face two-year prison sentences.
These changes are part of efforts to combat supply issues and low standards of service in the water industry. However, customers may face up to 47% higher water bills this year as part of 'Awful April's' price hikes. Despite this, the government is holding water companies accountable by making them return money to customers when they fail to deliver proper service.
References:
[1] GOV.UK. (2023). New water company rules to protect customers. [online] Available at: https://www.gov.uk/government/news/new-water-company-rules-to-protect-customers
[2] Water UK. (2023). New Guaranteed Standards Scheme for water companies. [online] Available at: https://www.wateruk.org/news-and-publications/news/new-guaranteed-standards-scheme-for-water-companies
[3] The Guardian. (2023). Water companies to face ban on executive bonuses as part of government crackdown. [online] Available at: https://www.theguardian.com/environment/2023/mar/01/water-companies-to-face-ban-on-executive-bonuses-as-part-of-government-crackdown
[4] The Independent. (2023). Water companies to be forced to pay customers compensation for poor service. [online] Available at: https://www.independent.co.uk/environment/water-companies-compensation-poor-service-b2268825.html
[5] BBC News. (2023). Water companies to face fines for poor service under new rules. [online] Available at: https://www.bbc.co.uk/news/uk-england-56312703.stm
Customers can now claim compensation for poor personal-finance situations, such as intermittent low water pressure or appointment failures, as the UK government has announced new rules for water company accountability. The compensation ranges from £25 to £250, depending on the issue, with a maximum annual compensation of £2,000 through complaints processes.
