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United Utilities (UU) has started the compensation payout to more than 300,000 customers who have faced a boiled water notice for a month after traces of the cryptosporidium parasite were found at a water treatment works.
Cheques are set to be arriving from today to the customers affected by the usage restrictions, with compensation levels ranging from £50 to £60, depending on when the boil water notice was lifted. The automatic payout will cost UU at least £15 million.
Further claims are expected when businesses customers begin appealing for additional compensation as a result of a loss of earnings incurred because of the boil water notice. UU has sent a separate letter to business customers detailing how they can make a claim.
UU customer services director Gary Dixon said: “We recognise that our customers have been significantly inconvenienced over the past few weeks and they rightly deserve to be compensated.
“The payment reflects that inconvenience and takes into account the additional cost for boiling the water and a refund for water services over the period.”
UU has worked with the Consumer Council for Water (CCWater) in establishing what level of compensation to offer customers.
CCWater senior policy manager Andy White said: “Customers have suffered considerable disruption so we are pleased United Utilities is acting swiftly to compensate every customer.
“We believe the quick automatic payment will ensure most customers are not out of pocket and are compensated for the disruption they have suffered.
“As is always the case, we would expect United Utilities to look sympathetically upon any situation where a customer has suffered extra losses.”
UU added it would take until the end of September to ensure all customers affected had received their cheques, due to the scale of the operation.
The traces of cryptosporidium were discovered on 6 August and the boil water notice was placed across parts of Lancashire.
UU installed UV rigs across its water network to destroy the last remaining traces of the parasite on 20 August, as well as flushing its distribution system and moving water from other parts of the network.
Following this, the company was able to start lifting the boil water notice to customers in parts of Lancashire from 27 August and since then more than two-thirds of households and businesses have had their water suppliers returned to normal.
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