Water companies deliver on their promises

07/11/2006

A new report published today by Ofwat shows that most water companies are delivering on their promises to maintain, and where necessary, improve service levels to consumers. 

The report, 'Levels of service for the water industry in England and Wales 2005-06', reviews the performance of the water industry over the past year. It shows that:

• most companies continued to deliver high levels of service to consumers;
• new investment reduced the risk of internal sewer flooding for nearly 1,600 properties; and
• the number of properties suffering from low water pressure fell from 7,400 to 6,100.

The report also contains information on companies’ performance in safeguarding the environment and providing good quality water.

Ofwat’s Head of Consumer Affairs Sue Cox said:

"I am pleased to see that companies are generally delivering on the promises that they made to their consumers to maintain good service levels and provide improvements where necessary. Nearly £1 billion was included in our price limits for 2005-10 to allow a significant reduction in flooding from sewers which consumers are already beginning to benefit from."

For the first time in seven years four water companies in the south of England introduced water restrictions in 2005-06.  Following a second dry winter a further three companies imposed restrictions in 2006-07.

While the restrictions have been unwelcome, they have enabled companies to carry on providing consumers with a continued supply of water. Upgrading systems to avoid hosepipe bans in all circumstances would be extremely costly and add significantly to customers' bills.

Ofwat is investigating three companies for their poor consumer performance. It has published its intention to fine Southern Water, Severn Trent Water and Thames Water. Ofwat cannot say what future regulatory action will be required, including the scale of the penalties, until the investigations are complete.

Ms Cox said:

"I recognise that the performance problems in three companies have raised concerns among consumers. Our aim is to make sure that consumers' interests are protected and we will take whatever action is necessary when a company's performance falls below the level we consider is acceptable."

Notes to Editors:
1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will allow companies to carry out their functions properly, and finance them. Its duties include protecting the interests of consumers, wherever appropriate by promoting effective competition. The Water Services Regulation Authority succeeded the Director General of Water Services on 1 April 2006.
2. The report, 'Levels of service for the water industry in England and Wales 2005-06', is available on the Ofwat website, www.ofwat.gov.uk, and from the Ofwat Library on 0121 625 1373.
3. Water restrictions are still in place in Southern Water, Mid Kent Water, South East Water, Sutton and East Surrey Water, Thames Water and Three Valleys Water. Folkestone and Dover Water removed their water restrictions on 2 October 2006.

Media Enquiries To OFWAT Press Office On: 0121 625 1322 /1442/ 1416/1496. Out of hours enquiries to: 0121 625 1300. 
Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk