Water firms to compensate households in England up to £2,000 for poor service
Typical compensation rates will increase, in some cases tenfold, so that households are appropriately redressed for poor service.
Recently, water companies have repeatedly come under fire for releasing untreated sewage into our waterways while increasing bills and still paying executive bonuses.
Last year, the government set out reforms to clean up England's water, including funding for infrastructure improvements, as well as more compensation when things go wrong.
This announcement comes as part of those reforms. Other actions that have previously been announced include strengthening regulations so that water bosses who pollute waterways and cover it up could face two-year prison sentences, banning unfair bonuses for six polluting water companies, and the launch of 81 criminal investigations into sewage pollution.
However, issues with high bills, service disruptions and leakages still plague consumers.
Read on to discover how much compensation you could be entitled to if you experience poor service.
New water compensation rules
If you suffer from flooding, you will now be eligible for up to £2,000, up from £1,000.
Households experiencing consistent low water pressure will be automatically eligible to receive up to £250, up from £25.
From October, you'll also be entitled to compensation if you're asked to boil your water due to a contaminated supply, if debt recovery has been mishandled or if a water company fails to read your meter at least once in a 13-month period.
The new rules are effective from today and customers should receive payments automatically.
The Department for Environment, Food and Rural Affairs (Defra) said it is working with water companies to expand the list of circumstances that would result in compensation being paid to customers.
- Read more: water bill price hikes and how to save money
‘Thames Water wanted £1,500 within weeks’
Jackie and Simon Perry were bewildered when they received a bill from Thames Water for £1,521.29, which was due for payment in just two and a half weeks.
They'd found that payments hadn't actually been taken for four years, which confused the couple as they'd always paid their bill by direct debit.
They live in a metered property but spend a number of months abroad every year, meaning their water consumption drops to zero.
Their meter hadn’t been read during this period, so the hefty bill had been estimated by Thames Water.
Thames Water found that it was a mistake with its billing systems and offered to reduce the bill by 50% to £760.34, which would need to be paid the following month.
How to complain about your water supplier
Compensation payments will automatically be credited to your account, if you're eligible, with immediate effect.
The Guaranteed Standards Scheme (GSS) sets minimum service standards for water and sewerage companies.
If you are experiencing issues with your water supplier and haven't received any compensation, you should first contact the provider’s customer service team.
Once you’ve formally complained, the water company must respond within 10 working days; otherwise, you can claim compensation under the Guaranteed Standards Scheme.
If your issue remains unresolved, you can escalate it to the Consumer Council for Water.
Ofwat, the regulator for the water and sewage industry, also has rules for water companies. For example, you’re liable to be charged for water you’ve used for up to six years, but your water company should offer a ‘reasonable payment plan’ under the regulator’s rules.
Your supplier can’t cut you off, but it can take you to court to enforce payment.
So it's also worth looking into Ofwat's regulations before complaining to your water supplier.
