Defra announces water ombudsman as immediate step to bolster customer power

In an immediate move to bolster the position of customers in a reset water system, Defra has announced it will create a new water ombudsman with legal powers to resolve disputes between customers and water companies – including to “put money back in people’s pockets”.

The Consumer Council for Water (CCW) currently handles complaints that customers have not been able to resolve with their water supplier, and runs a voluntary ombudsman scheme. 

Defra said: “The current system for dealing with complaints lacks any teeth and too often leaves customers with nowhere to go. With no binding consumer watchdog, customers risk being left stranded.”

Mike Keil, CCW chief executive, said: "CCW has been running a successful voluntary ombudsman scheme for water customers and one of our key asks of the [Cunliffe] Commission was to make this mandatory, so people can have absolute confidence that when they complain they have robust protection. We're delighted the Government is looking to build on our work at a time when we're seeing more people turn to us for help resolving complaints against water companies.”

The new approach will bring dispute resolution in water into line with other utilities. Energy and telecoms ombudsman services are co-located in Warrington. A Defra statement said: “Following the Independent Water Commission’s final report, we will look at the CCW’s role as part of a reformed regulator. We’re clear there will be no additional Arms Length Bodies as part of our productive and agile state agenda.”

The department said the new measures will “establish a new level playing field between customers and companies,” which builds on its reforms to double automatic payments under the Guaranteed Service Standards (GSS) scheme when water companies fail to deliver adequate standards of service.

• Ofwat is consulting until 12 September on changes to the GSS scheme in Wales, following its consultation for England. It has put forward two sets of proposals for feedback: one which maintains alignment with the updated scheme in England, and one which diverges in certain areas to take account of Welsh circumstances and preferences.