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Water companies are not doing enough to help vulnerable customers, and must understand the individual circumstances of customers to offer more tailored support, Ofwat has insisted.
In a report, published today, the regulator said that although there has been a “big increase” in support for vulnerable customers, the sector still has a “long way to go” to meet customers’ needs.
It warned that company performance is mixed when it comes to offering effective and inclusive support.
With unpaid bills an increasing problem, currently costing every water customer around £21 on their bill, Ofwat said a more tailored approach is “essential”, and benefits everyone.
The report pointed out that vulnerability can take many forms such as age, numeracy or digital literacy, a change in circumstances such as losing a job, or the effect of financial strain on mental or physical health.
Companies, therefore, must focus on understanding all customers and “not simply equate vulnerability with certain types of people such as the elderly or those on benefits”.
Ofwat chief executive Cathryn Ross said: “Today’s report shows it’s absolutely essential water companies don’t take a one-size-fits-all approach, and actively understand and respond to each customer’s specific needs.
“We are giving companies a clear message to focus on what their customers want rather than ticking regulatory boxes. There has been good progress, but there is still a long way to go. Many customers don’t get the help they need as they suffer in silence.
“Getting better at dealing with this issue is not only the right thing to do, but will benefit everyone as it will bring down the costs associated with unpaid bills. The single most important thing that companies can do is get to know their customers and understand their circumstances. They can then target services appropriately and build customer trust and confidence.”
Earlier this month, the water industry announced that the average household water and sewerage bill in England and Wales for 2016/17 will be £389 – an increase of £2 (less than 1 per cent) compared with the previous year. At the time, Ofwat urged water companies to do more to help customers who are struggling to pay their water bills.
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