Water customers will get double the amount of compensation for service failures
Share:
Households around the country are set to benefit from significantly higher payments to compensate them for water company service failures. Following public consultation, the Government has confirmed that new and increased compensation will be compulsory for water companies to pay to customers and businesses in the event of issues such as supply outages, sewer flooding or low water pressure.
Issues such as low water pressure could see payments of up to £250, compared to just £25 currently available. Meanwhile payments for more serious problems such as internal flooding from sewers could rise to £2,000 or more, compared to £1,000 under current rules.
Following a supply interruption in South Staffordshire last month as a result of a burst water main, compensation for residents was not compulsory. Under new regulations, this incident could have warranted payment of £150 for households and £300 for businesses.
Secretary of State for Environment, Food and Rural Affairs, Steve Reed, said: “Customers have too often been let down by water companies, with supply cut off, low water pressure and in some cases even contaminated tap water. “We are clear that the public deserve better compensation when things go wrong, so I’m taking action to make sure that happens. This is another step forward in our plans to reforms the water sector so it serves customers and the environment better.”.
Payment rates when water service standards are not met have remained unchanged since 2000, meaning reform is long overdue. When supply interruptions take place, some water companies voluntarily offer compensation for their customers. However, there is no statutory requirement to do so and compensation rates can vary significantly amongst companies and regions.
