The UK Government has proposed for water companies to be liable to compensating their customers by double the current amount for falling short of customer experience (CX) standards.
The list of actions and inactions that could result in increased compensation payments include failing to perform meter readings and installations and automatic payments for boil notices following drops in drinking water standards.
A ‘boil notice’ means customers have been advised to boil water before using it to ensure it is safe concerns or failing to perform meter readings or installations. This would have entitled Brixham and Bramley customers to compensation earlier this year when they endured outages earlier in the year.
In an unprecedented move within the CX industry, the first fines for water companies delivering substandard customer service were created by Ofwat, the Water Services Regulation Authority, in February this year.
Steve Reed, Secretary of State for Environment, Food and Rural Affairs, spoke out against the perceived shortcomings of the UK water industry:
“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.”
‘Fair and Transparent Customer Service’
According to the related press release on the UK government’s website, the average annual water and sewerage bill is £440.
In this instance, water companies would have to shell out a minimum of £40, as much as £250 for low pressure issues, and sewers flooding could lead to compensation claims of up to £2000, if the latest proposals were passed.
The latest baseline for customer service expectations has been set out in the Guaranteed Standards Scheme (GSS).
It also requires water companies to restore water supplies within a reasonable timeframe, reply to written complaints, and manage sewer flooding risks.
Until now the levels of reimbursement have not changed since 2000. The newly proposed reimbursement increase will, therefore, account for the shortfall in inflation and offer a fairer settlement for communities like Brixham and Bramley.
The UK government explains that latest regulations will bring “fair and transparent customer service at the heart of water company dealings”.