Consumers vent frustration with water companies

Consumers vent frustration with water companies as customer satisfaction plummets ahead of expected bill rises over the next five years

Household satisfaction with water companies across all areas of performance has seen an unprecedented decline, the Consumer Council for Water (CCW) has found in its latest survey of almost 5,000 households.

CCW said the biggest challenge facing companies was convincing customers they could be trusted to protect the environment, with just a third (33%) saying they were satisfied with the industry’s current efforts.

Professor Carolyn Roberts, an environment and water campaigner, said:

‘Water Companies appear to be seriously misleading the public and the regulators about the large number of occasions that raw or partly treated sewage is spilled into and onto our rivers, lakes and beaches. The evidence can be seen by walkers, swimmers, canoeists and citizen science groups,’

Professor Roberts is taking legal action against six water companies on behalf of 20 million households over allegations of under-reporting pollution incidents and over-charging customers as a result.

‘It’s very important that this damage to our shared heritage is stopped, and not surprisingly, UK citizens are fed up with the lack of progress,’ she said responding to today’s findings.

Anglian Water, Northumbrian Water, Severn Trent Water, Thames Water, United Utilities Water, and Yorkshire Water are all accused of failing to reveal the true scale of sewage discharges and spills made into UK waterways.

They are accused of breaching competition law because any under-reporting could have affected the price they could charge customers.

The competition court will consider whether to grant permission for the claims to go to trial at a hearing on 23 September.

Unprecedented decline in customer satisfaction

The CCW survey recorded an unprecedented decline in customer satisfaction with how companies clean and manage wastewater before its release back into the environment. Just 35% were satisfied with this, compared to 88% a decade ago.

Satisfaction with companies’ efforts to minimise sewer flooding has also plummeted over the same period, falling to 43% compared to 85% in 2014.

Just half of households agreed their company cared about the service it provided, also down 14%, while 55% felt what they were being charged for services was fair, down 9% from last year to its lowest ever level.

Alex Neill, co-founder of Consumer Voice, said: ‘The survey findings show the rising tide of people’s dissatisfaction with our water companies. From the price people pay for water to the way their company is handling environmental issues, people across the UK want companies to up their game.’

Water watchdog, Ofwat, announced in February new powers to impose fines of up to 10% of the company’s turnover for poor customer service but can’t tell companies to compensate its customers.

Trust in water companies at all-time low

Trust in water companies also reached its lowest level – a score of 6.37 out of 10 – since the survey began 13 years ago.

Every water company saw its trust score fall, with energy suppliers overtaking water for the first time as a more trusted utility across England and Wales.

Companies in the south east of England generally fared worse but the picture elsewhere – particularly on environmental matters – remained broadly negative.

Neill added: ‘People have a right to expect clean, safe water whether at home or in a river or the sea, and to pay a fair price for it. Water companies will need to radically rethink how they tackle the issues that matter most to their customers if they want to regain trust.”

‘The group claims launched by Professor Carolyn Roberts are just one way that consumers are seeking to hold these big water companies to account for sewage spills. If they are won consumers will be entitled to compensation and the water companies will need to change their behaviour.’

Water companies asking for significant bill rises

The findings come just weeks before regulator Ofwat publishes its draft determinations on what water companies in England and Wales can charge customers over the next five years, with bills expected to rise significantly over the period.

CCW chief executive Mike Keil said: ‘These are the worst results we’ve ever seen in our survey and it largely stems from customers’ concerns over companies’ environmental performance. It’s little surprise people are questioning whether they are getting a fair deal.

‘Trust won’t be rebuilt and customers will not tolerate future bill rises unless they see and feel a step change in the service they receive from their water company – whether that’s having the confidence to swim at their local beach or experiencing a more reliable water supply. If customers are going to be asked to pay considerably more, they have a right to expect far more in return.’

A Water UK spokeswoman said: ‘Water companies are proposing record investment to ensure the security of our water supply and significantly reduce the amount of sewage entering rivers and seas. This investment will bring tangible benefits for customers and go towards 10 new reservoirs and reducing sewage spills by 40%.

‘Bill increases are never welcome, but companies are massively increasing the level of financial support they offer with more than three million households set to be helped with bills.’