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by Karma Loveday

Ofwat heralds new licence condition power to enforce good customer service

Ofwat has heralded its new powers, effective today, to act against any water company whose customer service does not meet the conditions of its licence, following the introduction of a new customer-focused licence condition.


Ofwat said it expects all water companies to be focused on delivering a high level of customer service – from resolving complaints to making sure customers are informed and supported during supply interruptions. While some do well, others struggle – for instance during emergency incidents – and overall customer satisfaction has fallen since 2020-21.


Chief executive, David Black, said: “From today, we are putting water companies on notice to improve customer service and where we see failure, Ofwat can and will take action which could result in significant fines.” He added: “We expect this new licence condition to deliver real improvements in customer service across the sector. It is in the companies' interests to put customers at the heart of their business and provide levels of service that increase customer satisfaction.”


The action was backed by environment secretary, Steve Barclay, who commented: “Enforcement action for poor customer service is an important and necessary step to restoring trust in the water sector.”

CCW chief executive Mike Keil argued that: “A complete change in culture is needed in some companies if we’re to improve people's experiences and repair fractured trust and the new customer licence condition can help to focus minds.”


Breach of the new licence condition could see Ofwat impose fines of up to 10% of company turnover.





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