Dissatisfaction rises among business water customers

Satisfaction levels among business customers of water services have fallen over the past two years as consumers’ perceptions of value for money, care, trust and likelihood to recommend all dropped.

Water watchdog CCW’s bi-annual Testing the Waters report of water, wastewater and retailer services in the non-domestic market showed overall satisfaction down from 91% to 88% for water and from 88% to 82% for sewerage services.

Overall sentiment towards retailers – including billing, meter reading and customer service – was static at 70%, which is far below CCW’s target of 85% satisfaction by 2027 set last year.

There was a stark difference between happiness in England and Wales, particularly on retail services, which 85% of Welsh businesses classified as satisfactory compared to just 66% of English customers.

The watchdog called on retailers to do more to please customers.

“The cost of living crisis means that value for money is more important than ever for many businesses,” Emma Clancy, CCW chief executive said. “Retailers need to not only meet their customers’ basic expectations of consistent supply and accurate bills, but exceed them.”

Two years ago, 74% of all businesses surveyed said they were pleased with the value for money of services but this has fallen to 68%.

Fewer businesses said their providers cared about the service they provide. Overall, 46% of customers in England and Wales agreed that water providers cared and 42% that retailers did. This represented a dramatic dip from earlier surveys when just over half of customers said their water provider and retailer cared about the services they give customers.

Trust levels peaked in 2020/21, during the pandemic at 38% for water and 34% for retailer services, but have fallen again to 32% and 31%. This remains above the first report in 2018 when water ranked 29% and retailers 24%.

Reasons for retailer dissatisfaction included poor customer service, cited by 44% of respondents, inaccurate billing (28%), and service inefficiencies and issues not being resolved was an issue for 24%.

The number of businesses engaged in water efficiency activities (39%) also fell in the past two years compared to 2020/21 (46%) but was higher than 2018 (28%). Larger businesses and high consumption users were most likely to employ water efficiency strategies. Actions taken by customers included requesting a smart meter and adding efficient taps. Of those that did not engage in water saving activities, 49% said they could not use less, 16% said low bills disincentivised action, and 4% said they had received no consumption advice from their retailer.

CCW said retailers must work with water suppliers to raise awareness of consumption and highlight the benefits of water efficiency.

Awareness of the market has grown since the 2018 report, but still only 56% know they can switch or renegotiate supplier. Of those, 19% have switched leading to 9% of them reporting better service and 44% better value for money.

Just 8% renegotiated their contract, leading to 22% receiving better service, and 73% better value for money.