Government Forces Higher Compensation for Water Customers: Reforms in the Water Sector

The British government plans significant increases in compensation payments from water suppliers to customers affected by supply interruptions, sewage flooding, or low water pressure. Compensation for low water pressure could reach up to £250, significantly more than the previous £25. In cases of household flooding due to sewage pipes, compensation could rise to £2,000, compared with the current £1,000, according to the Department for Environment, Food and Rural Affairs (Defra). Although some water suppliers already provide voluntary compensation, there is no legal requirement for this, and the amount of payments varies greatly depending on the company and location. In the future, compensation should also be provided in cases where boil notices are issued due to poor drinking water quality or when water meters are not read or installed on time. These changes follow a public consultation, where an average of 84% of water customers and 70% of businesses agreed with the proposals, according to Defra. For example, affected households in South Staffordshire could have received £150 following a pipe burst last month under the new rules, while businesses could have received £300. A "do not drink" notice for 600 households in Bramley, Sussex, following a fuel leak in May led Thames Water to voluntarily offer £30. A new mandatory payment of £220 for households and £440 for businesses could have been possible. In the Cryptosporidium outbreak in Brixham, Devon, there was previously no compensation entitlement; in the future, affected customers could receive at least £10 per 24 hours, which could rise to more than £500 in prolonged incidents over eight weeks. The introduction of the new regulations is planned for next year. Environment Minister Steve Reed emphasized that customers have often been let down and deserve better compensation, which is why he is taking action to ensure this happens. This is another step in the water sector reform plans to better serve both customers and the environment.