Water companies will be forced to significantly increase compensation payments to customers affected by failures such as supply outages, sewer flooding or low water pressure, the government has said.
Customers who have problems like low water pressure could receive payments of up to £250, compared to the £25 currently available.
Meanwhile households affected by flooding inside their homes from sewers could receive £2,000 or more, compared to £1,000 under current rules, the Department for Environment, Food and Rural Affairs (Defra) said.
Some water companies voluntarily offer compensation to customers who experience interruptions to their supply or other problems, but there is no statutory requirement to do so and rates can vary significantly among firms and location.
The different circumstances that can lead to compensation will also include when Boil Notices are issued because of a drop in drinking water quality and when firms fail to conduct meter readings or installations on time.
The changes follow a public consultation which found an average of 84% of water customers and 70% of businesses agreed with the proposals, Defra said.
Under the new rules, a compulsory payment of £220 could have been given to 600 properties in Bramley, Sussex, who received the ‘Do Not Drink’ notice in May after a fuel leak. At the time, Thames Water offered a £30 voluntary payment.
Those affected by the cryptosporidium outbreak in Brixham, Devon, earlier in the year were not entitled to compensation. However, the new legislation would mean customers could now receive at least £10 per 24 hours, potentially amounting to more than £500 for incidents over eight weeks.
The changes are expected to come into force next year.
Steve Reed, Secretary of State for Environment, Food and Rural Affairs, 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.”
Payment rates for firms failing to meet water service standards have remained unchanged since 2000.
Mike Keil, chief executive of the Consumer Council for Water (CCW), said: “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.”
Water firms have asked Ofwat to grant steep hikes in customer bills for the five years to 2030 despite performance issues.
Ofwat is expected to confirm on Thursday how much it will allow them to increase their bills by over the period.
Follow STV News on WhatsApp
Scan the QR code on your mobile device for all the latest news from around the country
