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by Karma Loveday

Defra consults on doubling customer compensation for water service failures

Defra is consulting on the detail of plans announced post-election to double the amount of compensation paid to customers when they experience a water service failure.


Under planned changes to the Guaranteed Standards Scheme (GSS), payments would double for all existing standards and more than double for certain highly disruptive incidents, such as failing to provide notice of supply interruptions and missing arranged appointments with customers.


The government also intends to expand the list of circumstances that can trigger compensation, including introducing automatic payments for boil notices when drinking water standards drop, or when water companies fail to conduct meter readings or installations as promised.


Defra said that, based on an average annual water and sewerage bill of £440, the minimum payment of at least £40 under all proposals would now represent around 10% of the average bill, with several higher payments worth at least a quarter. An issue like low pressure could see payments of up to £250 and payments for internal flooding from sewers of up to £2,000.


Jenny Suggate, director of policy, research and campaigns at CCW, called the overhaul “long overdue”. GSS compensation has remained the same since 2000.


Water UK said it shared the Government’s ambition to “reform an out-of-date system”.


The consultation runs until 7 October.


• Ofwat and CCW have published the final report in a year-long programme of research into people’s experience of water incidents, including supply interruptions, drinking water quality problems and odour. Key themes that emerged included a lack of customer-centricity in incident management and inadequate communications. Ofwat has also published a document providing suggestions and good practice examples on improving customer service and support during incidents. For details, see https://www.ofwat.gov.uk/publication/improving-customer-service-and-support-during-incidents/

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