Consumer Council for Water
Southern Water to pay customers £123 million after investigation
More than £120 million is set to be paid to existing and former waste water customers of Southern Water after an investigation into the company by the industry regulator.
The Consumer Council for Water has responded to Ofwat’s final decision on the action it will take after uncovering serious failures in the way Southern operated sewage treatment sites and deliberately misreported its performance information.
In a total package worth £126 million, the company will:
- Return £123 million to former and existing customers. This is made up of:
- £91.2 million for underperformance penalties – money it should have paid as part of Ofwat’s price review incentive regime, and;
- £31.7 million (in lieu of a greater fine). This is additional compensation to customers for failing in its legal obligations.
- Pay a fine of £3 million on top – in recognition of the serious and significant breaches of its licence conditions and statutory duties
Responding to the decision, Sir Tony Redmond, London and South East Chair for the Consumer Council for Water (CCWater), yesterday said:
“Every household that was served by Southern Water during this period of appalling performance failure paid a price for the company’s misreporting, so we’re pleased Ofwat has supported our call for wastewater customers who have since left the region to be compensated too.”
“Financial penalties alone cannot repair the damage that has been done to customers’ trust in Southern, which is why the company needs to spell out exactly what action it is taking to restore confidence in it.”
Latest News from
Consumer Council for Water
Households at risk of missing out on water bill lifeline when they hit hard times06/08/2020 09:20:00
Water companies need to build a stronger relationship with their customers to reduce the risk of households missing out on vital help with their water bills and other assistance when they hit hard times.
CCW’s statement on new leakage figures03/08/2020 10:10:00
CCW responded to the publication of the latest leakage figures from Water UK.
CCW keeps pressure on poor performing water retailers as complaints fall23/07/2020 15:38:00
Complaints about water retailers have fallen for the first time since the majority of business customers in England were given the freedom to switch supplier.
Letter to water companies on green recovery22/07/2020 14:20:00
We believe water companies can play a vital role in helping the country overcome the economic and social challenges our country now faces in the wake of coronavirus.
Customer support must drive CMA decisions14/07/2020 13:20:00
As the Competition and Markets Authority (CMA) prepares to make final decisions over four water companies’ future plans, the Consumer Council for Water (CCW) warns that customers must not lose out on the service levels and investment they value most. Steve Hobbs, Senior Policy Manager at CCW, explains.
Love Water: Majority of Brits unaware of pressure on water resources22/06/2020 09:20:00
It never rains, it pours – or that’s how it might seem to the majority of us in the UK who believe we live in a wet and rainy country, according to a new nationwide survey.
CCW appoints Emma Clancy as new chief executive11/06/2020 12:02:00
CCW has appointed Emma Clancy as its new chief executive to lead its efforts in building a fairer and more resilient water sector for consumers.
UPDATED: Help for business customers impacted by coronavirus02/06/2020 15:38:00
Lockdown may be easing but the strain will remain on many small businesses that have been impacted by the coronavirus outbreak. If your company has been disrupted or hit financially it’s worth checking to see if you’re eligible for support with your water bills while you get back on your feet.