New Water Regulations 2025: What You Need to Know

The UK government is updating the rules for water companies in England, aiming to improve customer service and ensure fair compensation for service failures. Here's a breakdown of the key changes and what they mean for you:

1. What's Changing?

• Higher Compensation: The minimum payments water companies must make to customers for service failures are being increased to reflect inflation and the impact on customers.
• New Standards: Additional service standards are being introduced, such as automatic compensation in certain situations, and updates to reflect modern communication methods like emails and messaging.
• Scope: While the regulations apply to England, similar changes are expected in Wales in the future.

2. Why Now?

• The current compensation values haven't been updated since 2000, and service standards since 2008. The government aims to align them with today's expectations and economic conditions.
• These updates follow voluntary enhancements made by companies, which varied significantly. The new regulations aim for consistency across the board.

3. Key New Standards:

• Arrears Notices: Before taking formal debt action, companies must notify customers and offer a chance to make payment arrangements.
• Meter Reading: Water companies must read customers' meters at least once every 13 months.
• Priority Services: A list of customers needing extra support (due to medical conditions, for example) must be maintained, ensuring they receive necessary assistance during service interruptions.

4. Why This Approach?

• The urgency of implementing these changes without delay, particularly in light of high inflation and recent service disruptions, drove the decision to bypass the usual slower processes involving Ofwat.

5. Consultation and Support:

• A public consultation saw strong support for these changes, with the majority backing both the general standards and specific payment adjustments.

6. Impact on Businesses:

• While the changes apply to all companies, including small and micro businesses, no exemptions are possible to ensure all customers receive equal protection.

Conclusion: These updates are set to offer better consumer protection, ensuring water companies provide the service quality customers expect and deserve. Keep an eye out for the new standards being implemented in 2025, ensuring your rights as a water service customer are upheld.