PN 33/03: High service levels meeting customers' expectations

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PN 33/03	4 September 2003
HIGH SERVICE LEVELS MEETING CUSTOMERS' EXPECTATIONS

Water companies are continuing to provide customers with high levels of service, according to a new report published today by Ofwat.

'Levels of Service for the water industry in England and Wales 2002-03' highlights the performance of companies in delivering a range of services to customers based on water supply, sewerage services, customer service, water quality and environmental impact.

The report shows that water companies' performance is now stabilising at levels that broadly meet customer expectations, although further work is needed to reduce the incidence of sewer flooding which remains a major concern.

The report provides an overall performance assessment (OPA) that brings together a range of measures on individual company performance into a single assessment. This year's figures indicate that high levels of service have been delivered with limited differences in performance among companies.

Tony Smith, Director of Competition and Consumer Affairs at Ofwat, said: "Research carried out over the last two years by Ofwat and other stakeholders, including WaterVoice and the water companies themselves, confirms that most customers are satisfied with the level of services being delivered in relation to their costs.

"The continued improvement in levels of service is good news for customers, but there is no room for complacency. We expect the industry to maintain the substantial progress it has made since privatisation, and for those companies still falling short to improve their performance.

"We remain concerned about the number of properties still experiencing sewer flooding, and have agreed with companies that work to deliver faster improvements will be funded. We expect this to be an important part of companies' investment plans at the next price review."

The levels of service report contains information from the Environment Agency and Drinking Water Inspectorate on the companies' performance in safeguarding the environment and providing good quality drinking water.

The main topics covered in this year's report include:

Customer Service

The number of 'billing contacts' (written, telephone or direct contact with customers about billing issues) fell slightly to 19.3 million. Over 99% were answered within five working days, earning all companies a 'good' rating under Ofwat's absolute standards criteria.
Almost all written complaints (99.8%) were answered within ten working days, and all companies received a 'good' assessment.
The number of metered customers continues to increase and nearly all (99.8%) received a bill during the year based on a company or customer reading.

Water Service

Continuing the improving trend, the number of properties reported at risk of having low water pressure fell from 23,300 to 14,600.
Unplanned and prolonged (12 hours or more) supply interruptions dropped from 27,200 to 11,100, a welcome reversal of the deterioration seen last year.
For the fourth successive year there were no hosepipe bans or other water restrictions.

Drinking Water Quality

The quality of drinking water, assessed by the Drinking Water Inspectorate (DWI), continues at a very high level with 99.87% of tests meeting the relevant standard, compared with last year's figure of 99.86%.

Sewerage Services

Investment, coupled with improvements in companies' data, has resulted in a further reduction (from 4,100 to 3,300) in the number of properties at risk of being flooded internally by sewage more than twice in a ten year period.
There was a slight increase in the number of properties affected by internal flooding from sewers (from 22 to 23 per 100,000 properties), partly as a result of heavy summer storms in the north of England.

Environmental Impact

Bathing water quality reached an all-time high of nearly 99%, with just 6 out of 473 designated coastal waters failing to meet mandatory standards. 73% now have 'Blue Flag' status.
A rise in the number of prosecutions for pollution incidents (from 54 to 94) is of great concern to the Environment Agency, which is seeking company assurances on plans for immediate and sustained improvements.

Compensation
Companies paid out compensation of more than £2 million to customers who had experienced inadequate service during the year.

Regulatory Action
The service provided by telephone contact centres at some companies gave cause for concern. Both Northumbrian (including Essex and Suffolk) and South Staffordshire have introduced improvement plans which are already having a positive effect on services. We shall continue to monitor their progress.

At Three Valleys, where the problem is more pronounced, the company has provided us with an action plan, which we are discussing with them.

Temporary problems disrupted telephone contacts to Bournemouth and West Hampshire during changes to their call centre, but performance has since returned to normal levels.

Notes to Editors:

1. Copies of Ofwat's report, 'Levels of service for the water industry in England and Wales 2002-03', will be available from the Ofwat Library on 0121 625 1373 and on Ofwat's website www.ofwat.gov.uk
2. A table is attached showing company performance against levels of service indicators.
3. The statutory guaranteed standards scheme (GSS) was first introduced in 1989 and sets out common minimum standards that companies must meet. Revisions made in September 2000, set payment levels of £20 for domestic customers and £50 for business customers.
4. The Director General of Water Services is the economic regulator of the water and sewerage companies in England and Wales. He exercises his powers in a way that he judges will allow them to carry out their functions properly, and finance them. WaterVoice represents customers' interests.

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Out of hours enquiries to pager: 08700 555 500 water 503/509. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk

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