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Ofwat says water companies must maintain levels of service to customers
Most water and sewerage companies continued to deliver the high standards of service that customers expected in 2006-07, but a few have fallen short, says Ofwat's 'Levels of Service report,' published today.
Ofwat Director of Consumer Protection, Andrew Dunn said:
"Customers are reaping the benefits of regulatory pressure brought by Ofwat and the actions of the companies over many years. We expect these high standards to be maintained and will not shy away from taking appropriate action where they are not."
Some problems in the past year came from difficulties with customer contact and billing systems. Because of this the service provided to some customers who tried to contact their company in writing or by telephone was not good enough. Customers of Severn Trent Water, Southern Water and South East Water were the most affected.
We are watching closely as these companies rebuild and improve their customer service in line with agreed improvement plans. We welcome Southern Water's commitment to its customers that it will deliver its improvement plan with a promise to pay customers extra compensation if it fails to achieve it.
As a result of a number of company specific investigations into Guaranteed Standards Scheme (GSS), all companies were required to review how they deliver and report standards of service.
Each company's review was thorough and was checked by auditors. All companies made further improvements in their procedures as a result, ensuring better protection for customers from failures in standards. Each company remains responsible for its delivery to its customers and Ofwat will continue with the requirement that company Boards must sign off on the information they provide to prove they are meeting their statutory requirements.
Three Valleys Water has notified Ofwat of the outcome of an internal investigation into irregularities in data that was provided to the regulator relating to billing metered customers. Ofwat will decide what action to take once its investigation is complete.
Note 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. In 2005-06, Severn Trent Water, Southern Water and Thames Water alerted us to issues relating to their compliance with the Guaranteed Standards Scheme. Ofwat then began formal investigations.
3. Customers of all water and sewerage companies are entitled to minimum guaranteed standards of service, which are set out by the Government. The Guaranteed Standards of Service (GSS) Scheme applies to all water and sewerage customers, including potential customers, business customers, tenants and those in debt. Companies must inform billed customers of their rights under the scheme every year.
If a company fails to meet any of the guaranteed standards, it must make a payment to affected customers. Standards cover areas such as:
* making and keeping appointments;
* responding to account
queries;
* responding to complaints;
* interruptions to
the water supply; and
* informing customers about
interruptions to water supply.
Ofwat monitors company's performance against the customer service standards. Companies report their performance under the GSS to the regulator in an annual return (the June return). If the performance standard failures are not trivial Ofwat can impose a financial penalty.
4. We have proposed to fine Thames Water because poor processes and systems meant that customer received poor service and missed out on payments they were entitled to.
5. We have announced our intention to fine Southern Water £20.3 million for misreporting and failing to meet Guaranteed Standards of Service
6. We are currently assessing the outcome of the investigation at Severn Trent and considering the appropriate regulatory action to take.
7. The report, 'Levels of service 2006-07', is available on the Ofwat website, http://www.ofwat.gov.uk.
Ofwat
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