Defra consults on establishing a statutory Water Ombudsman

(by Karma Loveday)

Defra is consulting until 16 July on its White Paper plans to establish an independent, impartial Water Ombudsman.

There is currently no compulsory, legally binding redress scheme in the water sector and Defra argued: “It is vital customers have assurance their complaints will be resolved.” The move would align water with other regulated sectors which already have established ombudsmen.

The new body can be established under the legislative framework provided for in the Consumers, Estate Agents and Redress Act 2007. Defra has scoped out making an order requiring regulated water providers in England to be members of an approved redress scheme. (It noted the Welsh Government may take an alternative approach).

Other provisions it is consulting on included ensuring the Water Ombudsman: 

• Is accredited by the Ombudsman Association, and approved and overseen by the regulator (Ofwat, and then the new water regulator) in line with approaches used in other sectors such as energy.

• Provides free and accessible redress for all business and household customers in England.

• Makes binding decisions, which are enforceable.

• Works effectively with the regulator, sharing data and insights to contribute to driving sector-wide improvements.

Defra also said it intended to set out in a Ministerial Order any complaints which will not be in scope of the Water Ombudsman, if applicable. It offered the example of where a complainant has an alternative formal route to obtain redress with another body, such as the regulator.

Defra is consulting specifically on making an order requiring water companies to sign up; whether any complaints should be out of scope of the new Water Ombudsman, and whether both individual and business customers should be able to bring a complaint under the scheme.

It has previously been suggested that the Consumer Council for Water should provide the Water Ombudsman service, but in the consultation, Defra said the regulator would “follow the public procurement process to appoint a redress scheme provider to deliver the Water Ombudsman service. Existing major ombudsman services are operated by several providers who already have experience in the water sector and other regulated sectors and may propose a bid to be the Water Ombudsman.”