UK government proposes higher compensation for water company failures
LONDON, Aug 12 (Reuters) -British water companies that fail their customers will have to hand over higher compensation to affected households and businesses under plans announced by the government on Monday.
Under the proposals, compensation would be doubled where water companies failed to meet key standards to which customers were legally entitled, such as failing to provide notice of supply interruptions and missing arranged appointments.
The measures, subject to an eight-week consultation, would also expand the circumstances that would trigger compensation, with automatic payments for so-called boil notices when water must be boiled before it can be drunk or used for 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."
Years of under-investment by privately run, profit-seeking water companies have coincided with heavier rainfall resulting from climate change and a growing population to bring the country's water industry close to crisis.
Against a backdrop of growing public anger over sewage released into rivers and seas, the Environment Agency said last month that a majority of companies were failing to get the basics right and promised a tougher regulatory approach.
"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,” said Jenny Suggate at the Consumer Council for Water.
Reporting by Michael Holden
Editing by David Goodman
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