Ofwat has issued for consultation its proposals on a new licence condition which aims to ensure water companies better reflect customer expectations, drive higher standards of customer service and support the full diversity of customer needs.
The new regulatory tool specifically seeks to ensure:
customers are well-informed at all stages of the customer journey;
when something does go wrong, customers can rely on their company to put it right; and
all customers’ needs are identified, understood and met by companies in the services and extra help they provide.
To achieve these outcomes, Ofwat is consulting on a series of draft principles which would form the new licence condition. This would be complemented by more detailed guidance and enforceable.
The consultation document said: “Companies will need to ensure that they have systems and processes in place to deliver accessible and timely communications and embed a customer focused, continuously learning culture across their business, including with third parties who are working on their behalf. It will require companies to make a critical assessment of their offerings to customers, recognise areas for improvement and map out appropriate steps to achieve these improvements.
“Companies will need to work together on elements of this, as we expect more shared learning across the sector when it comes to achieving high standards of customer service, particularly in the management and response to incidents.” The new condition would apply to all water companies and New Appointees and Variations, and cover household customers, plus all but the largest businesses in Wales. It would not be a tool to use in individual enforcement cases as these are handled through CCW's complaints resolution powers.
Ofwat chief executive David Black said: “Households are not able to choose their water company, so it is crucial that good customer service is not a postcode lottery. We want the powers to enforce that fundamental expectation…Where we see companies letting their customers down, these powers give us the scope to step in and take action.”
The consultation is open until 7 July and the licence change expected in autumn.
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