8 June 2006
Severn Trent Water is facing a fine from the industry regulator after failing to meet national customer service standards.
Ofwat is proposing to impose the penalty for the company's failure to achieve standards outlined under the Guaranteed Standards Scheme (GSS).
The size of the fine will be determined when the full extent of Severn Trent's customer service failings is known.
Performance failures are just one aspect of a wider investigation that Ofwat has launched into Severn Trent's longer term customer service problems.
Philip Fletcher, chairman of the Water Services Regulation Authority, said: "It is extremely disappointing that we have had to launch this investigation into an area of Severn Trent Water's customer service activities, following our earlier investigation into other aspects of its business.
"From the evidence we have seen it is clear that Severn Trent Water has failed to meet the GSS performance standards. The failures were within the company's control and customers' interests have been damaged.
He added: "Customers' interests must be protected. A financial penalty will send a clear message to Severn Trent Water that it must meet its legal obligations to its customers."
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