Britons to get double compensation for water companies' failures
Water companies have come under fire for the sewage crisis plaguing the nation's seas, rivers and lakes.
Households and businesses will receive double the compensation for water companies’ poor customer service, under proposals set out by the Government.
Environment Secretary Steve Reed has announced plans for Labour to expand the list of circumstances that can trigger compensation, including automatic payments for boil notices when drinking water standards drop
Water companies failing to carry out metre readings or installations as promised will also be included.
Mr Reed said the Government hopes to “turn the tide on the destruction of our waterways”.
He added: “Our water industry is broken. After years of failure, households and businesses have been let down by water companies time and time again.
“The new Government will clean up the water industry and turn the tide on the destruction of our waterways ensuring water companies protect the interests of their customers and the environment.”
For households impacted by an incorrect notice of planned supply interruption, compensation will rise from £20 to £50, meanwhile, reimbursement for internal flooding from sewers will increase from a maximum of £1,000 to £2,000.
The proposals will be subject to an eight-week consultation.
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Consumer Council for Water (CCW) said increasing compensation will incentivise water companies to get things right the first time.
Jenny Suggate, director of policy, research and campaigns at CCW, said: “We’re delighted the Government is fast-tracking efforts to improve the Guaranteed Standards Scheme, with the potential to boost compensation and support for hundreds of thousands of people each year when they are let down by their water company.
“Given that there has been little change to the standards since they were first introduced, an overhaul is long overdue, and we know it is a pressing priority for household and business customers.
“Demanding higher standards of service and improving levels of compensation when things go wrong will incentivise water companies to get things right the first time for all customers.”
Earlier this year, around 16,000 residents of Brixham, in Devon, were left without tap water for eight weeks, and were told to boil their water before drinking it, cooking with it, or brushing their teeth.
If the compensation changes had been in place when the outages occurred, the residents would have automatically been entitled to payments.
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The Government has said the regulations will not apply retrospectively.
The reforms come as water companies face criticism for their handling of sewage, with regulator Ofwat last week proposing £168 million of fines for three of England’s biggest water companies.
The penalties include a £104 million penalty for Thames Water, £47 million penalty for Yorkshire Water and £17 million for Northumbrian Water for failing to manage sewage spills.
The Government has previously announced a Water (Special Measures) Bill to cut sewage spills and attract investment to upgrade infrastructure.
