Water companies face hefty fines if they fail to improve customer service
Water companies could receive hefty fines for poor customer service, under new rules.
The water regulator for England and Wales, Ofwat, says that there are too many instances where customers don't feel cared for by their supplier. Ofwat's boss, David Black, warned: "From today we are putting water companies on notice to improve customer service and where we see failure, Ofwat can and will take action which could result in significant fines."
The regulatory body has been launching fresh measures to safeguard consumers and the environment. They already have the right to stop companies from giving money to shareholders if they fail to uphold standards, as well as imposing fines.
Ofwat believes that the power to fine suppliers who don't treat their customers fairly will lead to big improvements in customer service across the sector. "It is in the companies' interests to put customers at the heart of their business and provide levels of service that increase customer satisfaction," Mr Black added.
A recent report by the watchdog revealed a drop in customer satisfaction across most of the companies it oversees. The report by the Consumer Council for Water (CCW) in September revealed that Southern Water was the most complained-about company.
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The complaints received by Southern Water were almost three times higher than the overall average for water and sewerage companies, while Thames Water's were just over one-and-a-half times higher. In 2022 to 2023, more than 230,000 complaints were made to water companies in England and Wales by households.
Mike Keil, chief executive of the CCW, said: "Every water company should provide excellent customer service but too often through our research and the complaints we handle we see people being badly let down, particularly by poor communication. A complete change in culture is needed in some companies
"if we're to improve people's experiences and repair fractured trust, and the new customer licence condition can help to focus minds." Environment Secretary Steve Barclay said: "We expect water companies to ensure customers are properly supported when services are disrupted."
He continued: "Enforcement action for poor customer service is an important and necessary step to restoring trust in the water sector and has been made possible thanks to government giving Ofwat increased powers to modify the licences of companies in England under the Environment Act. We are driving forward more investment, stronger regulation and tougher enforcement through the Plan for Water and will continue working closely with regulators to improve outcomes for both customers and the environment."
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