'Our broken water system needs to double compensation', say Government

A consultation has started today, following the cryptosporidium outbreak in South Devon in May

A make-shift bottled water station was set up in Broadsands car park
Author: Andrew KayPublished 12th Aug 2024

There's proposals to double the compensation offered when water firms issue so-called 'boil notices' like the recent one in South Devon.

In May 16,000 properties were warned that cryptosporidium, which causes vomiting and diarrhoea, was found in their water supply.

At the time some properties were offered ÂŁ15 in compensation which was later increased to ÂŁ265.

Some properties were still relying on bottled water - or having to boil their water before drinking it - two months later.

South West Water blamed a damaged air valve casing on private land, which has now been corrected.

The Government has today set out new measures to crack down on water companies 'failing their customers'.

Under the new plans, households and businesses will be entitled to higher compensation rates from water companies, and in a wider range of circumstances when basic water services are hit.

The new proposals set out by Secretary of State for Environment, Food and Rural Affairs, Steve Reed, will double the amount of reimbursement that customers are legally entitled to when key standards are not met by water companies.

Subject to an eight-week consultation, government proposals will double payments for all existing standards and will more than double the payments for certain highly disruptive incidents, such as failing to provide notice of supply interruptions and missing arranged appointments with customers.

The government will also expand the list of circumstances that can trigger compensation, including automatic payments for boil notices when drinking water standards drop, or when water companies fail to conduct meter readings or installations as promised.

The changes would mean that recent outages in Brixham and Bramley earlier this year would have automatically led to compensation for all customers, where there was no entitlement before.

Secretary of State for Environment, Food and Rural Affairs, Steve Reed said: "Our water industry is broken.

"After years of failure, households and businesses have been let down by water companies time and time again.

"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.”

Based on an average annual water and sewerage bill of ÂŁ440, this would mean the minimum payment of at least ÂŁ40 under all proposals would now represent around 10% of the average annual customer bill, with several higher payments worth at least a quarter. An issue like low pressure could see payments of up to ÂŁ250 and payments for internal flooding from sewers of up to ÂŁ2000.

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