Newbury MP calls on constituents to join in consultation over increases to water firms’ compensation rates

Plans to double the compensation that companies including Thames Water must pay in the event of disrupted services have been welcomed by Newbury’s MP.

A consultation is currently open, seeking views on the proposals.

Secretary of state for environment, food and rural affairs Steve Reed said households and businesses will be entitled to higher compensation rates from water companies, and in a wider range of circumstances when basic water services are hit.

This includes automatic payments for boil notices when drinking water standards drop, or when water companies fail to conduct meter readings or installations as promised.

Government figures suggest that, based on an average annual water and sewerage bill of £440, this would mean the minimum payment of at least £40 – 10 per cent of the average annual customer bill, with several higher payments worth at least a quarter.

An issue such as low pressure could see payments of up to £250 and payments for internal flooding from sewers of up to £2,000.

“The new Government will clean up the water industry and turn the tide on the destruction of our waterways ensuring water companies protect the interests of their customers and the environment,” Mr Reed said.

The Consumer Council for Water (CCW) is backing the consultation, with its director of policy, research and campaigns Jenny Suggate saying an overhaul is long overdue.

“Demanding higher standards of service and improving levels of compensation when things go wrong will incentivise water companies to get things right the first time for all customers,” she said.

Lee Dillon, the Liberal Democrat MP for Newbury, said the proposals were a “step in the right direction” but more needed to be done, arguing that regulator Ofwat had failed to protect consumers and natural resources.

“Water companies have been taking advantage of their customers for far too long, with inadequate service and environmental destruction becoming the norm,” he said.

“This consultation is a positive first step, but it cannot be the last.

“These companies have been charging customers steep fees while dumping sewage into our rivers and seas, showing a blatant disregard for both their customers and our environment.”

He wanted stronger regulations and protections, including seeing Ofwat replaced with a new regulator who would have new powers and to tackle sewage spills into rivers and seas.

“I’m committed to ensuring that the people of Newbury are treated fairly by these water companies and that our environment is preserved for future generations,” he said.

“This is just the beginning of the reforms we need.”

The consultation closes on Monday, October 7, and Mr Dillon is encouraging people to take part.

It can be found at https://consult.defra.gov.uk/water-affordability-and-consumers/consultation-on-updating-the-guaranteed-standards/consultation/intro/

“Here in Newbury, we’ve seen the effects of water companies prioritising profits over people and the environment,” he said.

“It’s crucial that residents have a voice in this consultation process and that their concerns are heard and addressed.”