Thames Water to pay customers up to 10 times as much in compensation for failures
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Thames Water and other water companies will have to pay customers far more compensation for failures such as fuel leaks, sewer flooding or low water pressure. The Government has confirmed that new and increased compensation will be compulsory for water companies to pay customers and businesses, the Department for Environment, Food and Rural Affairs (Defra) said.
Issues like low water pressure could see payments jump from £25 up to £250, while payments for internal flooding from sewers could rise to £2,000 or more, compared to £1,000 under current rules. Following a historic fuel leak from a petrol station in May some 600 properties in Bramley, Sussex, were handed a ‘Do Not Drink’ notice and a £30 voluntary payment from Thames Water.
But under the new rules, the water company would have to pay households £220 and hand businesses £440 each. Elsewhere when a burst water main interrupted the water supply in South Staffordshire last month, residents were not required to have compensation.
But under the new rules, residents would receive a £150 payment and businesses would receive £300. There was also no requirement for residents in Brixham, Devon, to be compensated following an outbreak of cryptosporidium, a parasite that can cause diarrhoea and vomiting, during a recent incident.
Now customers could be entitled to £10 per 24 hours, potentially leading to more than £500 for residents over eight weeks for similar cases. The changes are expected to come into force next year. Earlier this year water companies were ordered to return £158 million to customers through lower bills next year after delivering “disappointing results” on tackling key failings such as sewage pollution.
