Utility Week

22 | 16TH - 22ND MARCH 2018 | UTILITY WEEK Operations & Assets A n exceptionally harsh winter – and some equally harsh words being dished out to water companies. If hav- ing to contend with the "Beast from the East" and Storm Emma wasn't challenging enough for water companies and their customers, the subsequent rapid thaw added to their woes. Thousands of households lost their water supplies in the first weekend of March, and beyond. It's been a case of "water, water eve- rywhere, nor any drop to drink", to steal a line from Samuel Taylor Coleridge. Or as one national newspaper wrote: "Water, water everywhere, except the kitchen sink". Supply disruptions have hit households and businesses across London and the South East, as well as parts of the Midlands, York- shire, Scotland and Wales. Regulator Ofwat says several water com- panies have "fallen well short" when it came to forward planning to ensure the weather did not affect water supplies. Chief executive Rachel Fletcher says the situation has been "deeply distressing" for customers. She acknowledges the recent severe freeze and thaw "have undoubtedly had an impact on pipes and infrastructure", but stresses the "weather was forecast in advance". "A number of water companies appear to have fallen well short on their forward plan- ning and the quality of support and com- munication they've been providing, leaving some customers high and dry," she says. Ofwat will take a "long, hard look" at what has happened, and warns it "won't hesitate to intervene" if it finds water compa- nies have not had the "right structures and mechanisms in place to be resilient enough". The regulator has been asked to report to the government by the end of the month with "initial lessons" about the water supply disruptions. Speaking in Parliament on 6 March, envi- ronment minister Thérèse Coffey said she expects Ofwat to formally review the per- formance of water companies, and the gov- ernment will act "decisively to address any shortcomings exposed". "As well as problems being identified, I want to see excellent examples of practice and preparation shared across the sector," she added. Coffey had chaired a meeting earlier that day with water company chief executives, Ofwat and Water UK. She said that as well as statutory compensation, water companies should consider how they compensate cus- tomers on a "discretionary" basis. It's not yet clear how much the industry will have to pay out in compensation to domestic customers. There is also likely to be a bill for disruption to businesses. Coffey said the government has "high expectations" of water companies increas- ing their investment in water and sewerage networks. Tony Smith, chief executive of the Con- sumer Council for Water, says the watchdog has experienced a "significant increase" in calls from customers affected by the supply interruptions. "Many customers that have contacted us say the frustration and incon- venience of losing their supply has been compounded by poor communication from their water company," he says. "It's an issue that we'll be taking up directly with companies to ensure they learn lessons and share good practice where it was evident. Companies had ample time to pre- pare for the forecasted drop in temperature, but some of their planning fell short of cus- tomers' expectations." He adds: "Given the huge inconvenience this has caused to many customers, we think the standard automatic payments are the minimum they should expect. We expect water companies to be sympathetic to cus- tomers that have suffered extra hardship or losses and to be open to considering addi- tional compensation where appropriate." Under the Guaranteed Standards Scheme, customers are entitled to £20 for the first 48 hours of supply interruption and then £10 for each 24-hour period thereaer. While there are exemptions for extreme weather events, the regulator says it would nevertheless expect companies to pay this compensation to cus- tomers. "There's nothing stopping companies from going further and providing additional compensation or support to their affected cus- tomers, above the minimum requirements." Ofwat launched an investigation into supply disruptions on 11 March. Double trouble for water Water companies struggled to maintain supplies in the wake of the Beast from the East and Storm Emma, and their troubles didn't go unnoticed by regulators and the government, writes Katey Pigden. Analysis Out in the cold While delivering her statement in Parliament, Coffey said that, as of 10.30am on 6 March: • 5,000 properties were still affected in Streatham – the principal source of the problem was airlocks in the network that Thames Water was acting to remove. • Southern Water reconnected more than 10,000 properties overnight, while 867 properties in Hastings were still experiencing problems. • South East Water had identified about 2,000 properties around Kent and Sussex still without supply. • South West Water had about 1,500 properties affected. • Yorkshire Water had identified 13 affected properties.

• Cover