The UK government announced plans on Monday to increase compensation for customers when water company failures occur in meeting key service standards.
Under the new proposals, compensation would be doubled for households and businesses if water companies do not meet legal obligations, such as providing notice of supply interruptions or missing scheduled appointments.
The proposed measures, which are subject to an eight-week consultation period, also aim to expand the situations that would trigger compensation. This includes automatic payments for “boil notices,” which require customers to boil water before using it for drinking or cooking.
“Our water industry is broken,” said Environment Minister Steve Reed. “After years of failure, households and businesses have been let down by water companies time and time again,” Reed emphasized that years of under-investment by privately run, profit-driven water companies, combined with the challenges of climate change and population growth, have pushed the country’s water industry to the brink of crisis.
The proposals come amid growing public outrage over the discharge of sewage into rivers and seas. Last month, the Environment Agency reported that most water companies were failing to address basic issues and vowed to adopt a stricter regulatory approach.
“Demanding higher standards of service and improving levels of compensation when things go wrong will incentivize water companies to get things right the first time for all customers,” said Jenny Suggate of the Consumer Council for Water.
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