13 November 2006
In a recent report assessing the level of service given by water companies, water regulatory body Ofwat has declared that it will impose fines on water companies if they display poor customer service.
Severn Trent, Thames and Southern are all to be financially penalised for "for misreporting and failing to meet the guaranteed standards scheme".
Philip Fletcher, chairman of Ofwat, admitted in the recent report that: "These disappointing cases have undermined customers' confidence in the industry".
Ann Robinson, director of consumer policy at the price comparison and switching company uSwitch, stated that the fines were a step in the right direction but that Ofwat only looking at one aspect of the companies' failings.
"It is well known that water companies are making bigger profits than expected and attracting huge takeover premiums, yet they continue to waste a combined 3.6 billion litres of water a day while consumers pay the price with increased tariffs and water restrictions," Ms Robinson commented.
Ms Robinson also stated that the lack of competition within the industry meant that consumers were forced to accept the poor standards of service and that little would change until the industry addressed this.
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