Ofwat to report on how water firms help vulnerable customers

Regulator will make vulnerable customers a key focus of PR19

Ofwat has announced it will publicly report on how each water company plans to help customers in vulnerable circumstances for the first time as part of its forthcoming price review, PR19.

The regulator said today (5 October) it will report how companies “serve, support and protect” such customers and will clearly show which companies are “leading the field” and those that are “letting their customers down”.

Ofwat has been calling on water companies to step up their efforts to support vulnerable customers, making them a key focus of PR19.

It argues “as much as half the population” will find themselves, at some point, in temporary circumstances that may make them vulnerable, such as illness or bereavement.

The price review process will require all water companies to outline what they intend to do to support vulnerable customers as part of their overall business plans.

This is the first time Ofwat has asked companies to detail specific actions to identify customers in vulnerable circumstances, as well as understand and deliver against their needs.

Ofwat said companies will have to report publicly on the delivery of their plans and it will publish responses to each company’s business plan.

Cathryn Ross, chief executive of Ofwat, said: “Any of us could find ourselves in vulnerable circumstances at some point in our lives – often as a result of factors beyond our control.

“Companies have been doing more to identify and support vulnerable customers in recent years.  But they need to do more, especially to work together and to learn from best practice in other sectors. This is too important an issue for companies to be allowed to leave it in the ‘too-difficult’ pile.”

Ofwat is urging water companies to make greater use of the customer data to get a better understanding of the factors which drive customers towards vulnerable circumstances.

The regulator said it also wants companies to make “support accessible for customers and to provide support earlier before problems escalate”.

It said water companies should be working together and looking at other sectors for examples of best practice.

Ross added: “In our 2019 price review, we expect each water company to demonstrate how it will go the extra mile to deliver high quality customer service and affordability; helping customers in vulnerable circumstances is very much key to this.

“We will be publishing our assessment of how companies are responding to this challenge and they will need to report publicly on delivery.”

Last year, Ofwat published its vulnerability focus report, which highlighted that vulnerability can appear in many forms, such as age, numeracy or digital literacy, a change in circumstances, or the effect of financial strain on mental or physical health.