As water firms shower bosses with cash – here’s how to claim some back

Water bills have just risen by more than seven percent on average, putting more pressure on household finances.

Still, there are ways customers can fight back if their water supplier fails to meet certain standards.

Here we look at how you can hold water companies accountable.

ASK COMPENSATION

Households can benefit from a little-known government “guaranteed standards scheme” if they receive poor service.

The scheme is supervised by regulator Ofwat. So if you contact a water company with a question about your account in England and Wales, they should reply within 10 working days. Failure to do so will entitle you to £20 damages.

The same amount can be claimed if you wish to change the way you pay your bill and the supplier does not agree to the request within five working days and does not explain why. You can claim another £10 if it doesn’t pay soon.

There is also a £20 fine if suppliers do not turn up for an agreed appointment. This fine must be paid within ten working days – or you can claim a further £10. The fines also apply if a company cancels an appointment within 24 hours. Companies will inevitably try not to pay damages if they find the initial investigation ‘frivolous’ or ‘annoying’.

If your water pressure is low for at least an hour on two separate occasions within 28 days, you can claim £25 compensation. The exception is if the low pressure is due to drought or maintenance issues. The pressure can be measured using a £20 gauge bought from a DIY store, which is then screwed onto a kitchen tap. A meter reading of less than 0.7 bar indicates a problem. Compensation can only be claimed once a year.

If a company needs to temporarily shut off your water supply for more than four hours, they must give 48 hours notice. If you do not do this, you can claim compensation of € 20.00. If it’s not repaired within the stipulated time, you may also be entitled to £20. Late payment of this fee – more than 20 working days – means you can claim a further £20.

A burst main pipe must be repaired within 12 hours of being discovered at the water supply company. If it is a ‘strategic main’, workmen have 48 hours to fix it. If the water is not turned back on within the time limit, you can demand £20. If payment has not arrived after 20 working days, you can claim an additional £20.

You can contact the Consumer Council for Water on 0300 034 2222 for assistance if your water company is not helpful. If this government-funded body fails to bring joy, you can escalate your case to the Water Redress Scheme (0800 008 6909).

REPORT DISCHARGE

Holidaymakers have been warned of the danger of bathing this summer at more than 830 resorts across the UK as raw sewage continues to be dumped into the sea and our rivers. Water companies have been told by Ofwat that they have until the end of the year to address pollution caused by storm overflows and spilled sewage.

Charity Surfers Against Sewage says: ‘Fat cats from water companies swim in cash while we swim in sewage. Last year, instead of investing in water infrastructure, they rewarded chief executives with compensation totaling £16.5 million and paid shareholders £958 million in dividends.” Thames Water serves 15 million customers in the south of England. Some 630 million liters of water leak from pipes every day as it dumps raw sewage into rivers, despite a recent £51 million fine for missing pollution control targets.

United Utilities is the biggest offender – responsible for 40 percent of all wastewater discharges into rivers and coastal waters last year. It has been blamed for the ecological damage to Lake Windermere.

Sarah Bentley, CEO of Thames Water, received £2 million last year, including a bonus of £496,000. United Utilities boss Steve Mogford was paid a bonus of £727,000 as part of his £3.2m fee. He retired last month.

If you suspect that a water company has been releasing raw sewage into the sea or rivers, contact the company. Also talk to the Environment Agency (0370 850 6506). You may not get personal compensation, but the water supplier could end up with a multi-million pound fine to discourage re-polluting.

If your home experiences a sewer overflow, you can reclaim the sewage charge. This annual fee can vary between £150 and £1,000. If the flood is limited to your garden, you can claim half of the annual contribution.

CHECK YOUR ACCOUNT

Suppliers charge separately for supplying tap water and disposing of waste. Most homes also pay a sewage charge averaging £25 a year. But if your water ends up in the earth, you don’t have to pay. Those who are not connected to the main sewer system and use a septic tank do not have to pay waste costs. This can save at least £200 off an annual water bill.

Natalie Hitchins, head of household services at consumer group Which?, says: ‘You could be overpaying if you have a floor drain or septic tank. Your property papers must state whether the property is connected to the sewer system.’

SAVE BY USING A METER

Households with fewer occupants than bedrooms are usually better off with a water meter. The Consumer Council for Water makes a calculator available on its website to determine the best option.

A water meter provides a good incentive to save on consumption. Simple saving measures include watering the garden with butts placed to collect rainwater from the roof – and showering (with a £20 water-saving shower head) instead of taking a bath. This allows you to save at least € 100 per year.

Southern Water gives free water barrels to customers, while Thames Water offers free aerated shower heads. Andrew White, of the Consumer Council for Water, says: ‘Small changes in use help relieve pressure on our water resources.’

WATCH DIVIDEND

Investors dependent on dividends from water companies may need to look elsewhere, as regulator Ofwat is demanding the companies use more of their profits to stop sewer leaks.

Since the privatization of the sector 34 years ago, water companies have paid a total of £66bn to shareholders.

Aarin Chiekrie, equity analyst at asset manager Hargreaves Lansdown, said: “Water company earnings have generally been predictable and have historically supported reliable dividends.

But threats from the regulator to take action against suppliers who continue to pay dividends despite failing to meet performance standards should be taken seriously. This will put pressure on future dividends.”

United Utilities, Severn Trent and Pennon (owner of South West Water) are listed on the London Stock Exchange.

Last year they made pre-tax profits of £302 million, £276 million and £144 million respectively.

The annual dividends they paid were equal to 4.1, 3.6 and 4.7 percent.