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Ofwat plans reform to compensation for customers without water

Ofwat is asking for evidence to inform a review looking to update and uplift the compensation provided to customers when they are without access to water.

Residential customers are currently entitled to £20 if they are without water for a day and an extra £10 for each 24 hours on top of that.

Following its investigation into water companies’ performance during the ‘Beast from the East’, Ofwat concluded that the compensation arrangements in place do not reflect the impact on customers who are without access to water and is now reviewing them.

Ofwat is also calling for evidence on the pros and cons of expanding compensation arrangements to cover supply restrictions – such as hosepipe bans – as well as supply interruptions.

Commenting on the review, Ofwat chief executive Rachel Fletcher said: “We know that customers rely on water like no other service and customers have told us of the profound impact it has on them, their families and their work when they do not have access to water.

“The current compensation arrangements do not reflect the impact on customers of not having water and so we are seeking evidence to help find the right level of compensation. Equally important as setting the right level is making sure that when customers are due some compensation, access to it is fair, fast and free from hassle.”

Once Ofwat has reviewed the evidence, it will develop plans and submit recommendations to the UK and Welsh Governments by the end of the year.

Author: Robin Hackett, editor, WWT
Topic: Policy & Regulation
Tags: ofwat , compensation , water , water companies


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