Utility Week

UTILITY WEEK | 29TH JUNE - 5TH JULY 2018 | 7 News Focus and all stakeholders to protect custom- ers from future supply disruption and have already learned lessons following our own thorough analysis." A spokesperson from Southern Water, added: "We are already implementing root- and-branch changes to how we will handle every aspect of such a major event." Companies said they are carrying out overhauls of incident management systems and investing to make the network more resilient with extra monitors to respond more quickly in the future. Ofwat expects every water company to take action based on the review and the "industry as a whole to transform how it works together in situations like these". "Water is an essential service. Water com- panies must be prepared for whatever the weather brings," Fletcher concluded. Water UK chief executive Michael Roberts said: "Ofwat's report highlights what was done well – including the tireless work of frontline staff who kept water supplies going for most customers – and what was not done so well. "The impact varied across the country, with Ofwat saying that less than three per cent of all customers were affected. But we're sorry to say that in some areas significant numbers of customers experienced disrup- tion and hardship, and we are determined to prevent this happening again in the future." The industry body said £150 billion has been invested to keep improving the industry since 1989 and customers are now five times less likely to suffer from supply interruptions. "We want that record to get even better," Roberts added. However, the Consumer Council for Water (CCWater) says consumers felt "badly let down" aer the Beast from the East. It suggests a lack of emergency water sup- plies and poor communication from some water companies made life "needlessly more difficult" for thousands of homes and busi- nesses when they were le without running water in March. The silent treatment Communication was highlighted as a major concern because 43 per cent of affected households said they did not recall receiving any information from their company, the fig- ure increased to 49 per cent for non-house- hold customers. The water watchdog says its research did not paint a positive picture of how water companies support and communicate with their customers during such incidents and support for vulnerable customers was clearly lacking. Taken to task Ofwat says those companies that performed badly need to: • have better plans for emergencies; • plan their bottled water distribution better; • improve the information they have on their networks in order to spot problems early; • have better plans and con- tact details for talking with their customers and other organisations that can help; • step up for customers in vulnerable circumstances. So, what now? • Ofwat expects each company to publicly respond to its findings by 28 Septem- ber 2018. • Water UK will also co- ordinate work across the industry to share best prac- tice and improve collabora- tion in key areas. • Ofwat will consult on compensation levels. • The regulator says it will be "watching closely" to make sure companies improve things for their customers and it will take further action if they don't. "Some water companies did well to protect their customers from the impact of the weather, but others had significant prob- lems. All companies can learn lessons from this incident." JOHN RUSSELL, OFWAT'S SENIOR DIRECTOR OF STRATEGY AND PLANNING At its vulnerability workshop in Febru- ary, CCWater worked with companies on the scenario of a major supply interruption, which looked at planning alternative water supplies, communication and vulnerable customers. It emphasised then that relying on prior- ity services registers (PSRs) was not suffi- cient, because a larger number of people will suddenly find themselves in a vulnerable situation. The challenge for companies is to be ready to help all customers in vulnerable circumstances and not just those on a PSR. Tony Smith, CCWater chief executive, says: "The most affected consumers felt badly let down by their water company, with little or no information and in many cases insufficient alternative supplies of water even for the most vulnerable households. "As well as good compensation, con- sumers will want to see companies heavily penalised if they don't act now to put these failures right." Water companies have paid £7 million to customers in compensation but Ofwat's review concluded that compensation arrangements – the Guaranteed Standards Scheme – are not reflective of the impact on customers unable to access to water. The regulator will work with the UK and Welsh governments to consider changes to the rules on compensation and will open a consultation by the end of next month. Environment minister Thérèse Coffey, says: "This detailed review by Ofwat has identified significant failings from a number of water companies. These are completely unacceptable, especially when the good per- formance of other water companies shows what can be achieved. "Water companies now have a chance to address the issues raised as they develop action plans. If they do not, we will support Ofwat in any enforcement action and will not hesitate to take regulatory action ourselves." With so many lessons to be learned, sum- mer holidays are looking doubtful for water companies with two key submission dead- lines now looming in September. A series of Arctic winds hit the UK in February and March, dubbed the Beast from the East because the weather front hailed from Siberia.

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