Utility Week

12 | 23RD - 29TH MARCH 2018 | UTILITY WEEK Policy & Regulation Analysis S upply interruptions hit regions through- out the country earlier this month, and the water sector's handling of them is about to be put under the microscope. Ofwat will probe water companies to "get to the bottom" of the matter as thousands of customers, particularly in the South East, were le without water following the extreme cold snap and subsequent rapid thaw. The regulator says it will evaluate water companies' "preparedness" in the run-up to the severe weather conditions to determine if they "planned ahead sufficiently". "To be le without a vital public service like water – in some cases for several days – is deeply distressing, particularly for those in vulnerable circumstances," says Ofwat's chief executive, Rachel Fletcher. Ofwat aims to identify what lessons can be learnt so customers experience "mini- mum disruption in these kinds of circum- stances in future". Fletcher says Ofwat will uncover both where companies did well by their customers and also "where they've fallen short". And it won't just be the com- panies' handling of the situation during the incidents that will be assessed; the compen- sation they pay out to affected customers is also a key focus for the regulator. As yet, the total bill has not been added up, but no doubt it will be a hey one with some companies having to fork out substan- tially more than others. Fletcher says: "Water companies should ensure that compensation adequately reflects the scale of inconvenience and dis- tress caused to customers. Compensation should be fair, fast and free from hassle." Southern Water estimates it will be pay- ing around £700,000 to customers – going above the normal Guaranteed Standards Scheme (GSS) payment. A spokesperson for the company tells Utility Week: "We welcome Ofwat's review into how water companies responded to the recent freezing weather and subsequent bursts. "At Southern Water we've already begun a review of our performance, taking feedback from stakeholders on what we could improve and looking at our internal processes. We are fully supporting Ofwat's review and look for- ward to incorporating lessons learnt into our response plans." Thames Water is still tallying up its final bill, but the company has also agreed to compensate all affected customers over and above the statutory minimum. Ofwat says under the GSS customers are entitled to £20 for the first 48 hours of supply disrup- tion and then £10 for each 24-hour period thereaer. Thames' customers will receive £30 if they were affected for between four and 12 hours, rising to £150 for up to 72 hours. "Customers will not have to make a claim or do anything to receive this compensation, and we will be writing to those affected," a spokesperson for the company says. The spokesperson says Thames Water is already applying lessons that it learnt from the experience and will be completing a full assessment to identify what it could have done better. A spokesperson for Affinity Water, says: "We operate to a water industry scheme which guarantees the levels of service to our customers. "We are currently investigating this inci- dent and will contact customers who are eligible for compensation. We will also pro- vide Ofwat with any information requested to assist them in their investigations. Busi- nesses which are eligible for compensation will also get an automatic payment from us." Meanwhile, South East Water says that in just five days it fixed 550 leaks – more than ten times the normal amount. Simon Earl, South East Water's opera- tions director, tells Utility Week: "For us, like all water companies, the extreme weather caused an unprecedented number of leaks and bursts across our supply network, which led to supply interruptions or low pressure for many of our customers. "We had prepared for the weather, but the extraordinary combination of very low temperatures followed by a rapid thaw put additional pressure on the network and increased the scale of the issues we faced." He adds: "We have been in contact with Supply interruptions probe Sudden severe weather caused water supply outages across the UK, and Ofwat is scrutinising how well companies dealt with them in a formal investigation. Katey Pigden reports. Ofwat throughout the incident and have started our investigation and in the coming weeks we will prepare a report that reviews this incident and our recommendations for lessons learnt to be incorporated into our emergency plan, which we will provide to Ofwat to support its own investigation. "Our review will include feedback from stakeholders, customers and employees who have all been invited to provide us with their views on our preparations ahead of the freez- ing weather and actions taken once supplies were interrupted. We are also undertaking surveys of those customers and stakeholders affected. "We have written to customers affected with details of the compensation we are offering, which is over and above the statu- tory minimum." The company will also donate £2,500 to each school affected by the supply inter- ruptions and will offer education packages. Thames Water and Southern Water have pledged similar commitments, with the for- mer agreeing to donate the same amount and the latter promising £2,000 to each affected school in its supply area. Customer feedback As part of the review, Ofwat says it will be seeking input from a wide range of groups including household and business custom- ers who were directly affected by supply issues, public representatives, community organisations and local authorities. It will work with the Consumer Coun- cil for Water (CCWater) and will liaise with the Department for Environment, Food and Rural Affairs (Defra) and the Welsh government. The regulator says it will consider whether any further regulatory action is needed once it has completed the review. Phil Marshall, deputy chief executive of CCWater, says: "Our engagement with the companies and the insights we've gained from dealing with a very large number of calls and emails from customers mean that we are well placed to support Ofwat's review. We expect our involvement to mainly focus

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