Is low water pressure making your showers a misery? You could be in line for much higher compensation if your water company fails to fix the problem, under new rules launched by the government to combat supply issues and low standards of service.
Uplifts to the Guaranteed Service Standard Scheme will result in up to tenfold increase for customer compensation when they've been failed by water companies.
Customers will automatically receive more money for issues such as continued low water pressure and cancelled appointments.
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The announcement comes as customers face up to 47% higher water bills this year, as part of ‘Awful April’s’ price hikes.
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Customer compensation for people with severe issues such as flooding will double from £1,000 to up to £2,000. Meanwhile, households suffering consistent low water pressure will be automatically eligible to get up to £250 – a big uplift from the previous compensation rate of just £25.
For intermittent low water pressure, customers will be eligible for £50 in compensation, up to five times a year.
For appointments not made properly, compensation will rise from £20 to £40. For appointments not kept, the redress figure increases from £20 to £50.
Complaints not actioned on time, previously compensated with a £20 payment, will now attract a £40 payout.
If less than 48 hours’ notice is given for a planned supply interruption of more than four hours, compensation will be due of £50, up from £20.
Water companies will also have to pay compensation if they fail to fit a water meter on request – equivalent to fees due from the date charging by volume should have started until the meter is fitted – and pay up to £80 if they fail to read it at least once every 13 months.
No action will be needed from eligible customers as payments will automatically be credited back to their accounts by their respective water company.
The move marks the first uplift in compensation rates in 25 years, bringing payments in line with inflation to properly compensate households for poor service.
Steve Reed, environment secretary, said: “Too many water companies are letting down their customers – with leaking pipes, poor water supply and low water pressure.
“The government is holding water companies to account by making them put money back into people’s pockets when they fail their customers.”
The government is also working with water companies to expand the list of circumstances that will trigger compensation payments. Compensation for when customers are asked to boil their water due to contaminated supply will come into force later this year.
The new standards, outlined in the Guaranteed Standards Scheme, set out a baseline for customer service in the water sector.
They include providing timely restoration of water supply following an interruption, responding to written complaints and managing the risk of sewer flooding.
This comes as part of the government’s action to cut sewage spills and attract investment in the sector, including strengthening regulation to ensure polluting water bosses who cover up their crimes now face two-year prison sentences, and banning bonuses for bosses of six polluting water companies.
David Black, chief executive of Ofwat said: “We welcome these improvements to guaranteed standards and payments for customers.
“When customers suffer from problems like low pressure, disruptions to supply or sewer flooding they can experience major stress and inconvenience, and payment amounts must recognise the disruption to their lives when standards are not met.
“These new changes are another way to make sure customers are protected when companies get it wrong.”
The full list of reasons water companies will have to pay compensation can be found on the government’s website.
