CCW’s response to DEFRA’s consultation on the Guaranteed Standards Scheme

We welcome the opportunity to submit our views on Defra’s consultation on the Guaranteed Standards Scheme (GSS).
Background
The Guaranteed Standards Scheme (GSS) has been in place for 35 years, and few significant changes have been made to it during that time.
There have been big changes within the water industry, the wider economy, and in consumers’ expectations. We feel the GSS no longer adequately supports customers or reflects the impact that incidents have on those who experience poor service.
We want the GSS to reflect current expectations and be influenced by people’s views of what actions companies should take if an aspect of their key water or wastewater service has failed. To help achieve this, we wanted to work with the sector to develop areas for change.
In July 2024, CCW shared with Defra a set of recommendations to update the GSS. CCW’s recommendations were based on the findings from a programme of work which included customer research, a call for evidence and a series of workshops with industry stakeholders.
Executive summary
We strongly support the recommendations in Defra’s consultation on the GSS.
The proposed changes have the potential to boost payment levels and support for hundreds of thousands of people each year when they are let down by their water company. Demanding higher standards of service and improving levels of compensation when things go wrong will also incentivise water companies to have a customer-first culture and get things right the first time for all customers
We are pleased that the recommendations made by Defra, in the main, align with CCW’s recommendations and as such we are very supportive of what is proposed. Our response to all of the consultation questions is a positive ‘yes’.
However, Defra has included these two minor differences within their recommendations which we share our thoughts on in more detail below:
- Meter readings payment trigger point.
- Backdating payment for days one and two where notices have reached 3 days.
Detailed responses
We support the proposed payment levels for these standards.
The time period proposed for when a payment should be made, if a company has not read a customers’ meter, is too long.
CCW had recommended this be 13 months rather than two years as recommended by Defra. We still believe the payment should be due after 13 months.
Most companies already strive to apply a true meter reading at least once per year. In our company working group discussions concern was raised was about the fact that two billing periods (approximately 6 months), can together, be slightly over 12 months, therefore our recommendation was for 13 months to allow for this. We believe that 13 months is achievable for water companies, subject to reasonable caveats about access to meters and the nature of readings (ie: customer provided readings would be acceptable in the absence of a company reading).
CCW’s complaints report for 2023 shows that billing had the highest amount of complaints, and disputing the volume of water used was highest within the billing category.
We recognise that Ofwat guidance stipulates an accurate meter reading should be completed once every two years by companies, but with a reading taken every year, which could be done by the customer. Our recommendation for meter reading to be completed by companies at least every 13 months places an onus on companies to step in and complete a reading within a 13 month period where the customer cannot.
Long periods of estimated bills can lead to customer inconvenience and sometimes distress through the potential build-up of significant credit or arrears on their water bill accounts. This will also safeguard customers who are unable to complete their own readings for reasons relating to vulnerability such as mobility issues.
There are other benefit to more regular meter readings which can detect leakage sooner, benefiting customers from bill shocks caused by leakage.
The recommendation builds on CCW’s proposal by recommending that the payment be backdated to days one and two once the notice period reaches day three.
This delivers added benefit to those experiencing events lasting more than two days. However, those experiencing an event for up to two days may feel disadvantaged that compensation is paid for those initial days but only for those experiencing longer incidents.
Summary of the consultation questions:
Consultation questions | Our response |
---|---|
Consultation questions on updating customer service standard payments | |
1. Overall, do you support the policy to update payment values for customer service standard failures, setting aside the specific payment values? | Yes |
2. Do you support the proposed specific payment values for each Customer Service Standard? | Yes |
Consultation questions on updating supply interruption standards | |
1. Overall, do you support the policy to update payment values for failing to meet supply disruption standards, setting aside the specific payment values? | Yes |
2. Do you support the proposed specific payment values for each supply disruption standard for household customers? | Yes |
3. Do you support the proposed specific payment values for each supply disruption standard for non-household customers? | Yes |
Consultation questions on updating the low-pressure standard | |
1. Overall, do you support the proposed policy to update the statutory payment values in incidents of low pressure, setting aside the specific payment values? | Yes |
2. Do you support the proposed specific payment values for incidents of low pressure or in the event a customer receives a consistent supply of water with inadequate pressure? | Yes |
3. Do you agree with the proposal to lift the cap on the number of times a customer can claim due to low pressure from one incident to five incidents over a year? | Yes |
Consultation questions on updating the sewer flooding standards | |
1. Overall, do you support updating the payment values in the event of Sewer Flooding, setting aside the specific payment values? | Yes |
2. Do you support the proposed specific minimum and maximum payment values in the event of internal and external sewer flooding? | Yes |
Consultation questions on penalty payments | |
1. Overall, do you support updating the payment values in the event a company fails to pay a GSS payment within a given time frame, setting aside the specific payment values? | Yes |
2. Do you support the proposed specific payment values in the event a company fails to pay a GSS payment within a given time frame? | Yes |
3. Do you have anything further to comment on the updating of the current statutory minimum payment policies as outlined? | Yes |
Consultation questions on external flooding from sewers | |
1. Do you support the proposal to define outbuildings used for domestic activities as ‘internal’ for the purposes of the GSS? | Yes |
Consultation questions on the ‘exceptional weather’ exemption | |
1. Do you support the proposal to remove the exceptional weather exemption from the sewer flooding standards? | Yes |
2. Do you support the proposal to remove the severe weather exemption from the supply restoration standards? | Yes |
3. Do you support the proposal to retain the exceptional weather exemption for supply restoration, appointments and visit attendance where to complete the activity would risk the safety of water company staff? | Yes |
4. Do you support the proposal to introduce a replacement ‘force majeure’ clause in the case of sewer flooding? | Yes |
Consultation questions on aligning methods of communication | |
1. Do you support this proposal to align communication methods across all standards? | Yes |
Consultation questions on appointment definitions | |
1. Do you support the proposal for a review and update of Ofwat’s guidance to provide clarity on organisation and definition of appointment timeslots? | Yes |
Consultation questions on updating low pressure standard | |
1. Do you support this proposal for Ofwat to introduce new guidance on communicating the low-pressure standard to customers? | Yes |
Consultation questions on incorrect debt action standards | |
1. Do you support this proposal for Ofwat to introduce new guidance on communicating the low-pressure standard to customers? | Yes |
Consultation questions on incorrect debt action standards | |
1. Do you agree with the introduction of new debt action standards? | |
2. Do you think that the payment rates for both household and non-household customers are suitable? | Yes |
Consultation questions on meter reading and installation standards | |
1. Do you agree with the introduction of new meter reading and installation standards? | Yes |
2. Do you think that the proposed payment rates are suitable? | Yes with a written response above |
Consultation questions on Priority Service Register service provision standard | |
1. Do you agree with the introduction of the new Priority Service Standard? | Yes |
2. Do you think that the proposed payment rate of £50 is sufficient to support vulnerable customers where a promised service has not been delivered? | Yes |
Consultation questions on drinking water quality notice standards | |
1. Do you agree with the proposed introduction of drinking water quality notice standards? | Yes |
2. Do you agree with the introduction of new debt action standards? | Yes with a written response above |
3. Do you agree that the proposed payment of £20 per day triggered at the third day of a notice is sufficient for non-household customers? | Yes |
Consultation questions on inflation-based payment review clause | |
1. Do you agree with the proposal for a joint review of payments to be triggered automatically after cumulative CPIH inflation exceeds 10%? | Yes |
2. [For water companies and retailers and regulatory bodies] Are there any challenges in implementing these proposals that you would like to highlight? | Yes |
Consultation questions on automatic payments | |
1. Do you agree with the proposal that GSS payments should be made automatically to the extent practicable? | Yes |