HOUSEHOLDS blighted by shoddy service from water companies could soon get twice as much compensation.
Automatic payouts would be triggered over warnings to boil water, missed appointments and supply interruptions, under Government plans.
GettyHouseholds blighted by shoddy service from water companies could soon get twice as much compensation[/caption]
Environment Secretary Steve Reed insisted the crackdown on the “broken water industry” was long overdue.
He said: “The new Government will clean up the water industry and turn the tide on the destruction of our waterways, ensuring water companies protect the interests of their customers and the environment.”
The proposals, heading into a consultation, would guarantee a minimum payout of £40 if the average water bill is £440.
For issues such as low pressure, payouts could be up to £250 and severe flooding would be up £1,000 to £2,000.
It comes after 16,000 residents in Brixham, Devon, were left without tap water for eight weeks this year.
They would have automatically received compensation for being forced to boil their water under the new rules.
The Consumer Council for Water said increasing payouts will incentivise firms to get things right the first time.
Spokeswoman Jenny Suggate added: “We’re delighted the Government is fast-tracking efforts to improve the Guaranteed Standards Scheme, with the potential to boost compensation for hundreds of thousands of people each year when they are let down.”
The scheme aims to ensure water supply is quickly restored if cut off, and timely responses to complaints and sewer flood management.
It comes as water companies face mounting criticism over sewage spills.
Watchdog Ofwat has proposed a £104million fine for Thames Water, a £47million fine for Yorkshire Water and a £17million fine for Northumbrian Water.
The Labour Government has also introduced a Water Bill aimed at slashing spills and driving investment in infrastructure upgrades.
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