CCW issues bill rise warning as sentiment tracker returns worst results ever

Customers won’t tolerate future bill rises unless they see a step change in the service they receive from their water company, CCW warned as it reported the lowest ever levels of trust in the industry in this year’s Water Matters survey.

The tracking research, which has been running for 13 years, revealed satisfaction with water companies declined across every measured area, with the largest falls relating to issues that impact the environment. CCW said the starkest decline was customers’ satisfaction on wastewater management: just 35% were satisfied with this aspect in the latest survey, compared to 88% a decade ago. Satisfaction with companies’ efforts to minimise sewer flooding also plummeted from 85% in 2014 to 43% now. Trust in water companies reached its lowest level (6.37 out of 10) since the survey began.

Dr Mike Keil, chief executive of CCW, said: “These are the worst results we’ve ever seen in our survey and it largely stems from customers’ concerns over companies’ environmental performance. It’s little surprise people are questioning whether they are getting a fair deal.

“Trust won’t be rebuilt and customers will not tolerate future bill rises unless they see and feel a step change in the service they receive from their water company – whether that’s having the confidence to swim at their local beach or experiencing a more reliable water supply. If customers are going to be asked to pay considerably more, they have a right to expect far more in return.”

Quoting CCW data, a BBC report last week https://www.bbc.co.uk/news/articles/ce55vp78n40o highlighted bills could rise by between 24% (at South Staffs) and 91% (at Southern) by 2030, based on updated business plan submissions and a forecast inflation rate of 2%, in line with the Bank of England's target. This sparked other commentary, including from the Lib Dems that “ministers should block bill hikes”.

Industry sources said it was unusual to quote figures including inflation. Southern Water issued a statement which said reports that it is asking Ofwat to approve a 91% increase in bills between now and 2030 “risks creating confusion among our customers and communities”. Katy Taylor, chief customer officer, said: “While we await confirmation from Ofwat on our plan and the correspondent increase in bills, the numbers quoted have been increased by a third party to take into account estimated inflation levels over the next six years.” She said bills had been held down to date, increasing by only £2 in the past ten years in nominal terms; that investment was needed to meet customer expectations; and that discounts of up to 45% are available for those who need help to pay.