There has been widespread coverage of the Government announcement that water companies will be forced to double the compensation paid to customers for service failures.
The Guaranteed Standards Scheme (GSS) will see new, improved, and compulsory payments in the event of issues like water supply outages, sewer flooding or low water pressure.
Outlets including the FT, Sun, Express, Independent, Evening Standard and Mirror reported on the shake-up of the current rules, which were last updated almost a quarter of a century ago.
Issues like low water pressure could see payments of up to £250, compared to just £25 currently available, and payments for internal flooding from sewers could rise to £2,000 or more, compared to the existing £1,000.
The changes will also expand the eligibility to provide payment for a broader range of circumstances, including Boil Notices and when meters are not properly installed or regularly read.
The changes apply to household and business customers and follows an eight-week public consultation with an average of 84% water customers agreeing with the proposals, and 70% of businesses. The increased compensation package will come into effect next year.
Secretary of State for Environment, Food and Rural Affairs, Steve Reed, said:
“Customers have too often been let down by water companies, with supply cut off, low water pressure and in some cases even contaminated tap water.
“We are clear that the public deserve better compensation when things go wrong, so I’m taking action to make sure that happens.
“This is another step forward in our plans to reforms the water sector so it serves customers and the environment better.”
Mike Keil, Chief Executive of the Consumer Council for Water (CCW), commented:
“The current Guaranteed Standards Scheme is not fit for purpose, so we welcome the swift action the Government has taken to bring about long-overdue improvements.
“The increased payment levels when things go wrong, alongside fewer reasons for companies to avoid making payments, means that there are far greater incentives for water companies to get things right first time. The overhaul of these standards marks a step forward in improving consumer protection and repairing fractured trust in the water sector.”
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