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CCW challenges Ofwat’s choices on customer credit refunds and minimum meter reading

by Karma Loveday

CCW has challenged Ofwat’s processes and recent decisions regarding protections for business customers. 


In a letter to Ofwat chief executive David Black, CCW chief executive Mike Keil expressed “deepest concerns” about the rejection of two Customer Protection Code of Practice change requests submitted by his organisation. These concerned: 


  • Annual automatic refunds for customers who pay by direct debit and have built up credit – CCW said the need for this is evidenced by complaints data and research, and Ofwat’s choice to leave it to customers to request refunds is inadequate given lack of awareness of the market. It rejected Ofwat’s logic that auto-refunds are too complex and against customer wishes, and called for the decision to be reconsidered given the £242m of credit sitting in customer accounts as of March 2024.


  • Boosting meter reading requirements – CCW was alarmed at Ofwat’s December proposal to require business bills to be based on a visual, customer or remote meter read “only where this is available”. The letter pointed out: “The current requirement is one accurate bill a year based on a meter reading, where the property is metered. The Ofwat proposal is a significant shift from the current requirement for the core service of meter reading.” 

    Keil highlighted that the vast majority of complaints are about billing and charging, and that: “If retailers are less incentivised to take meter reads, billing accuracy will decrease, leading to even higher levels of customer dissatisfaction. To tackle this, billing standards must be increased, not reduced.” CCW said retailers are obliged to send at least two bills a year based on actual reads; it asked for the CPCoP to require this in its change proposal submitted to Ofwat in December 2023. Keil argued: “Most metered customers receive two bills a year at a minimum, so ensuring both are based on actuals does not create an additional cost burden on retailers.”


The watchdog is concerned about the negative impact on business customers and the market, if Ofwat’s proposals stand.

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