Water firm with three million customers slashing bills this month after £40million compensation pot
A MAJOR water firm is continuing to reduce bills for customers as part of a £40million compensation pot.
It comes after Welsh Water allegedly misled the industry watchdog over its poor performance.
It will now pay nearly £39.4million of redress to customers after Ofwat found evidence of “significant failure of governance and management” over the past five years.
This includes a £10 rebate on bills worth a collective £15million for customers.
They’re already going out and the remaining ones should be paid by the end of this month.
An extra £15million of costs will not be passed on to customers and will instead be taken on by the water firm.
Plus, it’ll pay £9.4million for underperformance.
The Welsh company will also invest an extra £59million in upgrading its infrastructure by 2025, to address the poor performance on leakage and water user per customer targets.
Ofwat started its investigation in May last year after an internal review by the water company found “governance and management oversight failures” in data reporting.
Water use per customer was found to be lower than reported and leaks were found to be a higher level.
David Black, chief executive at Ofwat, said: “For five years, Welsh Water misled customers and regulators on its record of tackling leakage and saving water.
“It is simply indefensible and that is why we are making Welsh Water pay this £40million to benefit its customers.
“Today’s announcement puts the industry on notice that we have the resources and will act when companies fail to meet their obligations to customers.”
Pete Perry, Welsh Water’s chief executive said: “We are very sorry that this happened. We proactively brought this issue to Ofwat’s attention in April 2022 having identified it as part of our annual performance assurance process.
“Ofwat’s key conclusions as to what went wrong align with our own investigations that were shared with Ofwat together with our proposals for customer redress and additional investment to tackle leakage and per capita consumption.
“Rebates have already been made to 1.4million customers.”
How to claim your rebate with Welsh Water
Welsh Water said it aimed to compensate its customers within six months in late May last year.
The £10 credit should have been added to all customers who had a live account on March 31, 2023.
Customers with a water meter should already have started receiving the rebate late last year.
Those without a water meter should see the credit in their bill for February or March this year.
If you believe you should have received the £10 rebate but still haven’t after the end of this month, get in touch with Welsh Water.
You can chat with a customer service assistant live online on their website or speak to an agent over the phone.
When will my water bill rise?
Millions of households will see their water and sewerage bills rise by up to £71 a year from April 1.
Water UK said firms would invest a record £14.4billion in return for customers’ money to ensure supply security and “significantly reduce” the amount of sewage in rivers and seas.
The rise comes amid ongoing regulatory concern over dividends paid out by water firms to shareholders amid the cost of living crisis and public fury about sewage overflows into waters.
What water bill support is available?
Over two million households who qualify to be on discounted social water tariffs aren’t claiming the savings provided, according to the Consumer Council for Water (CCW).
And the average household qualifying for the discounted water rates can slash their bills by £160 a year.
Every water company has a social tariff scheme which can help reduce your bills if you’re on a low income and the CCW is calling on customers to take advantage before bills rise in April.
Who’s eligible for help and the level of support offered varies depending on your water company.
Most suppliers also have a pot of money to dish out to thousands of customers who are under pressure from rising costs – and you don’t have to pay it back.
These grants can be worth hundreds of pounds offering a vital lifeline when faced with daunting water bills.
Do you have a money problem that needs sorting? Get in touch by emailing money@the-sun.co.uk.
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