14 January 2008
A Stroud MP has contacted the water industry watchdog over Severn Trent's decision not to pay compensation to some of his flood-hit constituents.
David Drew, who represents Stroud, wrote to Ofwat regarding the households who faced their water being cut off due to the June and July 2007 floods.
The water firm is under no obligation to pay, according to the current compensation rules imposed by the regulator.
However, Mr Drew told the Stroud News and Journal that utilities have a moral obligation to compensate customers in these circumstances.
"The decision not to pay compensation is totally wrong," he added.
"The company should reconsider and, if not, Ofwat should overrule the decision."
In a separate case last week, Severn Trent paid compensation to around 700 customers in Staffordshire, after it emerged that they had been overcharged by around £400,000 in total.
Speaking to the BBC, chairman of the consumer council Sir James Perowne - who aided the customers in their bid - said that the decision to pay was a "satisfactory outcome".
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.