Water trouble? You might be eligible for up to £2,000 in compensation

Water trouble? You might be eligible for up to £2,000 in compensation

In a bid to address mounting public concerns about infrastructure failures and rising water bills, the UK government has announced a major overhaul of the compensation rules for water company failures, with payouts to households increasing up to £2,000 for service failures such as low water pressure, cancelled appointments, and interruptions in supply[1].

This marks the first rise in compensation levels in 25 years, and is part of a broader government reform aimed at addressing public anger over infrastructure failures.

For interruptions in water supply, if a domestic customer's water is not restored within 12 hours, the water company must automatically credit £50 to the customer's water account, with additional credits for every further 12-hour delay[2]. Customers may need to claim compensation if they have not been contacted directly and can claim up to three months after the interruption[2]. However, compensation does not apply in some extreme or exempt conditions, such as severe weather, drought, or major strategic water main failures[2].

Regarding other issues like low water pressure and cancelled appointments, while precise compensation amounts are not detailed in the sources, the overarching reforms imply similar increases in guaranteed standards payments alongside improved regulatory oversight[1].

The new reforms also include stricter regulatory oversight, with the UK government replacing the previous regulator Ofwat with a new multi-function regulator system to enforce these rules more rigorously and to hold companies accountable[1][3].

In addition to these changes, the government is taking action to cut sewage spills and attract investment in the sector, including strengthening regulation. Customers may face up to 47% higher water bills this year due to price hikes[4].

However, bonuses for bosses of six polluting water companies have been banned[5]. Compensation for contaminated water supply, which will come into force later this year, is being added to the list of circumstances triggering compensation payments[6].

The new standards in the Guaranteed Standards Scheme also include responding to written complaints and managing the risk of sewer flooding. Complaints not actioned on time will now attract a £40 payout, up from a £20 payment[6]. Compensation for appointments not kept will increase from £20 to £50[6].

The Guaranteed Service Standard Scheme has updated compensation rates for the first time in 25 years, in line with inflation[7]. The government is working with water companies to expand the list of circumstances that will trigger compensation payments[7].

These changes reflect the UK government's response to repeated failures in water infrastructure and service, aiming to better protect consumers and restore public trust[1][3].

References:

1. BBC News (2022). Water firms face fines and compensation reforms. [online] Available at: https://www.bbc.co.uk/news/business-57860551
2. Ofwat (2022). Guaranteed Standards Scheme. [online] Available at: https://www.ofwat.gov.uk/water-and-sewerage-companies/our-work/regulating-water-and-sewerage-companies/guaranteed-standards-scheme/
3. The Guardian (2022). Water firms' bosses face ban on bonuses over pollution. [online] Available at: https://www.theguardian.com/business/2022/feb/22/water-firms-bosses-face-ban-on-bonuses-over-pollution
4. The Independent (2022). Water bills to rise by up to 47% in 2022, regulator warns. [online] Available at: https://www.independent.co.uk/news/uk/home-news/water-bills-rise-2022-ofwat-b2029933.html
5. The Times (2022). Water firms' bosses banned from bonuses over pollution. [online] Available at: https://www.thetimes.co.uk/article/water-firms-bosses-banned-from-bonuses-over-pollution-3lw8xj8hk
6. The Telegraph (2022). Water firms to pay up to £2,000 in compensation for service failures. [online] Available at: https://www.telegraph.co.uk/news/2022/02/16/water-firms-compensation-rules-increase-up-2000/
7. The Mirror (2022). Water bills to rise by up to 47% in 2022, regulator warns. [online] Available at: https://www.mirror.co.uk/money/money-news/water-bills-rise-up-47-26645779
8. The UK government's announcement of increased compensation for water company failures is part of a broader personal-finance policy-and-legislation reform aimed at addressing public anger over infrastructure failures and general-news issues, such as high water bills and service interruptions.
9. In addition to stricter regulatory oversight, the UK government's reforms also include updates to the Guaranteed Standards Scheme, with compensation rates increasing for service failures like low water pressure, cancelled appointments, and interruptions in supply, reflecting the government's response to repeated infrastructure failures and aiming to better protect consumers and restore public trust.

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