Customer compensation for water supply problems to increase from next year
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Water firms are to be forced to significantly increase compensation payments to customers affected by failures such as supply outages, sewer flooding or low water pressure, the Government has said. Customers who suffer problems like low water pressure could receive payments of up to £250, compared to the £25 currently available, while households affected by flooding inside their homes from sewers could receive £2,000 or more, compared to £1,000 under current rules, the Department for Environment, Food and Rural Affairs (Defra) said.
Some water companies voluntarily offer compensation to customers who experience interruptions to their supply or other problems, but there is no statutory requirement to do so and rates can vary significantly among firms and location. The list of circumstances that can trigger compensation will also be extended to include situations when Boil Notices are issued by water companies when drinking water quality standards drop, or when firms fail to conduct meter readings or installations on time.
The changes follow a public consultation which found an average of 84% of water customers agreed with the proposals, as did 70% of businesses, Defra said. Compensation for residents in South Staffordshire whose water supply was disrupted last month due to a burst water main was not compulsory, but households could have received a £150 payment under the new rules, while businesses could have been paid £300.
A ‘Do Not Drink’ notice for 600 properties in Bramley, Sussex, after a fuel leak in May resulted in Thames Water offering a £30 voluntary payment, but could have triggered a compulsory payment of £220 for households and £440 for businesses under the new rules, Defra said.
