Ofwat launches new standards to improve services for vulnerable customers

Ofwat has set out new standards for water firms to improve their services for vulnerable customers amid concerns that many eligible households are missing out.

The regulator said “significant” progress had been made by firms, who had increased their Priority Services Registers (PSRs) from less than 2% of households in England and Wales in 2020 to more than 10% currently.

However, it warned that “much still needs to be done” as 52% of households were likely to be eligible for PSR services.

The new PSR standards, which build on guidance set out earlier this year by the regulator and discussions at this year’s joint Ofwat and Ofgem Vulnerability Summit, include data checking so that lists are kept up to date and accurate as well as expectations around how companies should communicate with customers about registering with the service.

In September the two regulators announced that energy and water firms would share details of vulnerable customers signed up to the PSR to provide faster support and cut the burden on households to disclose their circumstances to multiple organisations across the two sectors.

The service includes priority support in an emergency and advance warning on planned energy or water supply interruptions.

Ofwat has also reviewed each water company’s proposed vulnerability strategy for meeting the needs of customers that need extra help and said some firms “must go further” to develop clear plans that would provide the right support for customers who need it.

Lynn Parker, senior director for casework, enforcement and customers at Ofwat, said: “We have been challenging companies to improve their customer service and drive-up standards. But it’s when things go wrong that the response from companies is most critical.

“For us to see meaningful change, it needs to start with companies focusing on a customer-driven culture and leadership.

“We have seen too many examples where customers, who are in a more vulnerable position, are being let down by water companies communicating poorly or not holding accurate information.

“That is why it is so important we continue to raise awareness, so customers know what they are entitled to, and the help water companies can provide.”

Andy White, from the Consumer Council for Water (CCW), said: “The move towards PSR standards is another important step to ensuring people who need support with their water services receive that help and it is of a consistently high standard.

“These standards should set out clearly what people can expect in terms of support, while ensuring their water company is held accountable for meeting customers’ individual needs effectively.”

The new standards come as Ofwat is set to make a final decision on household water bill increases on December 19.

Latest requests by water firms would see the average consumer bill in England and Wales rise by 40% between now and 2030, costing £615 per year.