WIREDGOV

Increased protection for sewer-flooded customers

WATER SERVICES REGULATION AUTHORITY News Release (PN 09/08) issued by The Government News Network on 31 March 2008

New regulations that come into force tomorrow will strengthen the protection for consumers who suffer sewer flooding. The regulations have been introduced by the Government and follow Ofwat's recommendations of how GSS should be improved for customers.

The changes will ensure customers normally receive at least £150 if their building is flooded by sewage from a public sewer in England & Wales.

Under the Guaranteed Standards Scheme (GSS) water and sewerage companies must make automatic payments to customers when their performance falls below a certain standard.

Andrew Dunn, Ofwat's Director of Consumer Protection, said:

"We recognise that payments can never reimburse customers for the distressing problems they experience when they are flooded with sewage.

"These payments are not designed to take the place of insurance. But they are recognition of a service failure by the company.

"As well as benefiting from these new rights customers can also help to avoid flooding by disposing sensibly of fat and other items which can block sewers."

The new GSS regulations will extend the rights of customers by:

* Setting a minimum payment of £150 each time their building is flooded by sewage;

* Including a new standard for customers materially affected by external sewer flooding of their land and property by sewage; and

* Setting external sewer flooding payments at 50% of the annual sewerage charge for each incident (minimum payment of £75).

Under GSS, companies are exempt from making payments when flooding is due to exceptional weather conditions or blockages and other problems with the customer's drain. Ofwat will be consulting in April on guidance to help customers and companies understand when the weather exemptions are likely to apply.

Notes to Editors:

1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will protect the interests of consumers, promote value and safeguard future water and sewerage services by allowing efficient companies to carry out their functions properly, and finance them.

2. The Water Supply and Sewerage Services (Customer Service Standards) Regulations 2008 (the GSS Regulations) set out common minimum standards that water and sewerage companies must meet for a range of customer services. Further information on the Regulations is available on the Ofwat website, http://www.ofwat.gov.uk

3. The maximum payment level for each sewer flooding incident under GSS is £1,000 for internal flooding or £500 for external flooding.

4. Companies need not make payments for sewer flooding under the GSS if flooding is due to:
i. exceptional weather
ii. industrial action
iii. an action of the customer
iv. a defect, inadequacy or blockage in the customer's drain or sewer

or, for internal sewer flooding only, if the company could not have known the customer was affected and the customer does not claim a payment within three months of the incident.

For external sewer flooding incidents only, the company is also exempt from making a payment if the customer does not claim within three months of the incident or the customer was not materially affected.

5. During the period 2005-10, sewerage companies plan to spend around £1 billion to reduce the number of properties at risk of sewer flooding.

6. 5,746 properties experienced internal flooding from sewers (both from overloaded sewers and other causes such as blockages) in 2006-07.

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