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Southern Water customer service investigation The decision by the Serious Fraud Office (SFO) to call off its investigation into Southern Water means we are now free to complete our own investigation into the company's failures in customer service performance. We have already given notice of our proposal to impose a financial penalty on Southern Water for its failure since April 2005 to achieve customer service performance standards under the Guaranteed Standards Scheme (GSS). Southern Water informed us in October 2005 that it had discovered that it had:
The company also reported these failures to the SFO. The SFO began an investigation in October 2005. Our investigation covers all of these irregularities and looks at all aspects of customer service at Southern Water. When the failures were identified the company provided us with an undertaking that it would pay any customers who had lost out. It also agreed to an action plan to improve its levels of customer service performance. The company has reported its progress to Ofwat monthly since the problems came to light. Although initially customers saw some improvements, recent evidence shows that in some areas performance has now deteriorated. Southern Water attributes this partly to the introduction of a new billing system in February. Unless customers see significant improvements, additional regulatory action will be necessary. We will continue to ensure that customers are protected from the failures of water companies. Notes to Editors: 1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will allow companies to carry out their functions properly, and finance them. Its duties include protecting the interests of consumers, wherever appropriate by promoting effective competition. 2. The press notice announcing that Ofwat proposed to impose a financial penalty on Southern Water for its customer service failures (PN 13/06, 31 March 2006) is available on the Ofwat website, www.ofwat.gov.uk 3. Southern Water has given Ofwat an undertaking that it will not benefit to the detriment of its customers from any irregularities found by the investigation.  |
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