Water firms must act following ‘Beast from the East’ review

Ofwat has today (19 June) published its report on the water sector’s response to the so-called “Beast from the East”.

The severe weather conditions that affected Britain in February and March left more than 200,000 customers without water supply for more than four hours, while tens of thousands were left off supply for days, according to the report.

The review launched by Ofwat in the aftermath of the “Beast from the East” has found that water companies’ frontline staff worked tirelessly. While some water companies were well prepared for the severe weather – which had been forecast – others performed badly, causing significant hardship for their customers.

Working closely with the Consumer Council for Water, Ofwat’s review heard from a wide range of affected customers including households, schools, business owners and local authorities.

Ofwat found too many incidences of poor advance planning, inadequate communication with customers and a lack of basic support, such as bottled water.

Research by the Consumer Council for Water suggests that almost three-quarters of customers who were affected did not receive alternative supplies of water. In some cases, customers were left to fend for themselves or depend on the support of local bodies or volunteers.

Following the review, Ofwat is requiring four water companies – Thames Water, Severn Trent, Southern Water and South East Water – to submit a detailed, externally audited, action plan setting out how they are addressing the issues identified. The plans must be submitted no later than 28 September.

Ofwat said it will take further action against any water company that provides an unsatisfactory response.

“The freeze and rapid thaw earlier this year was forecast and was not unprecedented. A number of water companies showed what can be done to serve customers in the face of bad weather. But too many companies were caught off guard and let people down, causing real hardship as a result. Our report shows there is no excuse for this level of failure,” said Ofwat chief executive Rachel Fletcher.

“Four companies have three months to satisfy us that they will be ready to perform at the level customers deserve the next time there is bad weather. We will take action if they don’t rise to this challenge. We expect every water company to take action on the back of this review and the industry as a whole to transform how it works together in situations like these.

“Water is an essential service. Water companies must be prepared for whatever the weather brings.”

Following the severe weather conditions, water companies paid out £7 million to customers in compensation. However, Ofwat’s review has concluded that current compensation arrangements – the Guaranteed Standards Scheme (GSS) – are not reflective of the impact on customers unable to access to water.

As a result, the regulator will work with the UK and Welsh Governments to consider changes to the rules on compensation and will open a consultation by the end of next month.

Responding to the review, Water UK said it plans to work closely with the industry to act on Ofwat’s recommendations and ensure customers are less likely to be hit by supply interruptions.

“The impact [of the extreme weather] varied across the country, with Ofwat saying that fewer than 3 per cent of all customers were affected. But we’re sorry to say that in some areas significant numbers of customers experienced disruption and hardship, and we are determined to prevent this happening again in future,” said Water UK chief executive Michael Roberts.

“Since 1989, water companies have invested around £150 billion to keep improving the industry, and as a result customers are now five-times less likely to suffer from supply interruptions. We want that record to get even better, which is why we are going to work with the industry on the report’s recommendations, and will report back to Ofwat on our plans by the end of September.”