Failing water firms forced to pay ten times as much compensation

Metro

4 days ago

The move will mean more money for victims of water company mistakes (Picture: Bloomberg via Getty Images)
People whose homes are left flooded could get twice as much money in compensation from water companies after a shake-up of the payout scheme.
Reimbursements for a range of issues, from cancelled appointments to late restoration of supply, will be boosted from today.
It means those who consistently face low pressure in their homes could go from getting a maximum payout of £25 once a year to £50 up to five times each financial year.
And the top amount of compensation for victims of internal flooding from sewers will double from £1,000 to £2,000.
Environment Secretary Steve Reed 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.'
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Compensation will also be awarded for a wider range of issues from later this year, the Department for the Environment, Food and Rural Affairs said.
They will include times when customers are asked to boil their water due to a contaminated supply.
At least 46 people fell in in Brixham last May due to a waterborne disease (Picture:)
That was the case last year in the Devon town of Brixham, where some South West Water customers had to boil their water for more than a month due to a Cryptosporidium outbreak.
The government said the changes to the Guaranteed Standards Scheme (GSS) announced today were the first raise in compensation rates for 25 years.
How water supply compensation is changing Internal flooding from sewers : Previously minimum of £150 and maximum of £1,000, rising to minimum of £300 and maximum of £2,000
: Previously minimum of £150 and maximum of £1,000, rising to minimum of £300 and maximum of £2,000 External flooding from sewers : Previously minimum of £75 and maximum of £500, rising to minimum of £150 and maximum of £1,000
: Previously minimum of £75 and maximum of £500, rising to minimum of £150 and maximum of £1,000 Low pressure : Previously £25 once a year, rising to £50 up to five times a year for total of £250
: Previously £25 once a year, rising to £50 up to five times a year for total of £250 Supply not restored on time : Previously £20 for households, with £10 for each subsequent 24 hours, and £50 for non-households, with £25 for each subsequent 24 hours. Rising to £50 for households with £50 for each subsequent 24 hours, and £100 for non-households with £100 for each subsequent 24 hours
: Previously £20 for households, with £10 for each subsequent 24 hours, and £50 for non-households, with £25 for each subsequent 24 hours. Rising to £50 for households with £50 for each subsequent 24 hours, and £100 for non-households with £100 for each subsequent 24 hours Planned interruption to supply lasting more than four hours, with less than 48 hours' notice : Previously £20 for households and £50 for non-households, rising to £50 for households and £100 for non-households
: Previously £20 for households and £50 for non-households, rising to £50 for households and £100 for non-households Failure to make automatic compensation payment : Previously £10 to £20 for households and £10 to £50 for non-households, rising to £40 for households and £100 for non-households
: Previously £10 to £20 for households and £10 to £50 for non-households, rising to £40 for households and £100 for non-households Appointments not kept : Previously £20, rising to £50
: Previously £20, rising to £50 Appointments not made properly : Previously £20, rising to £40
: Previously £20, rising to £40 Failure to action complaints, account queries, or requests to change payment arrangements on time: Previously £20, rising to £40
Ofwat Chief Executive David Black said: '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.'
Liberal Democrat environment spokesperson Tim Farron said 'half-baked announcements' wouldn't achieve the 'fundamental reform' his party believes is needed in the sector.
He said: 'To create real change in our failing water industry, the regulator Ofwat must be abolished and replaced with a tough new regulator that can hold companies accountable.'
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