Utility Week

6 | 29TH JUNE - 5TH JULY 2018 | UTILITY WEEK News Focus Inside story W ater companies have some hard les- sons to learn and must take steps now to avoid a repeat performance of the mistakes made before, during and in the aermath of the so-called Beast from the East. Ofwat has called out Thames Water, Severn Trent, Southern Water and South East Water in particular for their poor per- formance. The companies now have three months to submit "detailed, externally audited, action plans" setting out how they are addressing the issues identified. If they provide an "unsatisfactory response", the regulator has warned it will take further action. Ofwat's Out in the Cold report, published on 19 June, reveals more than 200,000 cus- tomers across the country were le without a water supply for more than four hours and tens of thousands were le off supply for days. "Households, businesses, schools and public organisations across the country were affected by either low pressure or no running water," says John Russell, Ofwat senior direc- tor of strategy and planning. The regulator suggests water companies need to take ownership of the situation and should view the incident as an opportunity to be seized to ensure trust and confidence in the sector. "Some improvements will take time to complete, but steps must be taken now to ensure that customers are better pro- tected next winter," Ofwat urges. It says: "Severe weather events are likely to become more common as the impacts of climate change are felt. Companies must continue to go further to ensure the net- works, processes and capabilities they have will meet this challenge and ensure cus- tomers are truly put at the heart of their businesses." The regulator's review acknowledges frontline staff worked tirelessly and high- lights some water companies were well prepared for the severe weather – which had been forecast – but it found others per- formed badly and caused "significant hard- ship" for customers. Ofwat says it found too many incidences of poor planning, inadequate communication with customers and a lack of basic support. It suggests the impact of the Beast from the East depended largely on factors within com- panies' control, such as the quality of their plans for handling major incidents. Those without appropriate plans in place for this type of incident had to design and deliver a response on the fly, which was slower and less effective than companies that already had robust plans in place and better network data. Better-performing companies such as Northumbrian Water, United Utilities, Wessex Water and Yorkshire Water used real- time information and monitoring systems to identify and manage the issues. Ofwat says they demonstrated resilience in their sys- tems to increase production and move water to where it was needed. Rachel Fletcher, chief executive of Ofwat, says: "The freeze and rapid thaw earlier this year was forecast and was not unprec- edented. A number of water companies showed what can be done to serve customers in the face of bad weather. "But too many companies were caught off guard and let people down, causing real hardship as a result. Our report shows there is no excuse for this level of failure." Making amends Thames Water, Severn Trent, Southern Water and South East Water have all welcomed Ofwat's findings and have apologised to affected customers. Steve Robertson, Thames Water chief executive, said: "We rapidly increased water production by 15 per cent to minimise dis- ruption, with less than a third of one per cent of our customers affected for more than 12 hours. "The scale of leaks and bursts was the worst in living memory and the rapidity of the thaw had an unprecedented customer impact. We're really sorry we could not pro- tect those customers impacted and it is right that we have compensated them at a level considerably higher than the statutory rate. "We are committed to working with Ofwat Firms feel the cold The Beast from the East exposed some water companies as woefully unprepared for extreme weather. Katey Pigden reports. CCWater research The Consumer Council for Water asked more than 1,000 household and 260 non-household consumers supplied by seven of the worst- affected companies – Affinity Water, Welsh Water, Severn Trent, South East Water, Southern Water, South West Water and Thames Water – about their experience of the Beast from the East. Key findings include: • Communication by companies was poor. Two out of five affected consumers did not hear from their water company about the interrup- tions. There was an over-reliance on social media, and people found "word of mouth" was the best source of information. • The provision of alternative, emergency water was inadequate. Seven out of ten consumers did not receive an alternative water supply during their interruption. • Consumers in vulnerable circumstances had not been prop- erly identified and catered for. The vast majority (93 per cent) of those identifying themselves as vulner- able felt they did not receive the support they needed. • Businesses suffered all round from poor communication from their wholesale water company. There was inadequate emergency water and inadequate compensation that did not cover their losses. The water watchdog said it would work with the industry to encourage improvements to the planning and preparations needed to ensure con- sumers are not le "high and dry" again during a major incident.

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