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The qualitative research, carried out during the summer by Accent Marketing and Research, was commissioned jointly by WaterVoice and Ofwat - in consultation with Water UK - against a background of rising debt in the water industry. The levels of outstanding bill payments, the amount of revenue written off, the numbers of customers in debt and expenditure on debt collection by the water industry have continued to rise since 1998-99. The total household revenue outstanding for up to 48 months for 2002-03 stood at £781 million, an increase of £115 million (17%) since 1998-99. WaterVoice and Ofwat have been exploring ways to tackle this growing debt problem and wished to gain a better understanding of how customers viewed paying their water bills in the context of the household budget, and to identify ways in which the water companies could encourage customers to pay bills promptly and regularly. The research found that rent/mortgage and Council Tax were seen as the top priorities, with water featuring alongside gas and electricity as the next most important items. However, customers with water debt often had multiple debts and were continually juggling which bill to pay next, and how much. This was commonly described as "robbing Peter to pay Paul." The imposition of extra charges, more vigorous recovery action or other sanctions influenced which bills customers chose to pay first. The need for frequent and effective communication between the water company and customers also emerged as a key factor in encouraging prompt and regular payment of bills. Maurice Terry, WaterVoice Chairman, said: "The research has provided some useful insights which could help to improve and focus the companies' efforts in collecting payment of water and sewerage bills from their customers. "WaterVoice will work with the water industry at regional and national level to consider the research findings and Accent's recommendations. We will seek to ensure that the water companies' debt management and recovery approaches are tailored to collect outstanding revenue as effectively as possible, so as to minimise the cost of debt recovery which is borne by customers." Philip Fletcher, Director General of Ofwat, said: "The research has confirmed that the general principles set out in Ofwat's Dealing with customers in debt – Guidelines address the right issues and will help companies to continue refining their approach to this important issue." Notes to editors 1. An executive summary setting out the main findings and recommendations made by Accent is attached. 2. Copies of Accent's customer research report Paying for Water, commissioned by WaterVoice and Ofwat, will be available from the Ofwat Library, Centre City Tower, 7 Hill Street, Birmingham B5 4UA, tel: 0121 625 1373, and on the web at www.ofwat.gov.uk or www.watervoice.org.uk 3. Accent's research was based on a combination of face-to-face in-depth interviews and focus groups held in different parts of England and Wales. 4. WaterVoice provides a strong and independent voice for all customers of the water and sewerage companies in England and Wales. WaterVoice operates through nine regional committees in England and a committee for Wales. They represent the interests of customers in respect of price, service and value for money; they also investigate complaints from customers about their water company. 5. The ten WaterVoice committee Chairmen form the WaterVoice Council. The WaterVoice Council and its sub-groups deal with issues at national and European level. 6. 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. MEDIA ENQUIRIES TO WATERVOICE SENIOR COMMUNICATIONS OFFICER ANDREW MARSH ON 0121 625 3637 or 07778 160803 (out of hours) OR OFWAT PRESS OFFICER ZOË HOWARD ON 0121 625 1416. WaterVoice and Ofwat press releases are available on the web at www.ofwat.gov.uk and www.watervoice.org.uk  | ||||||||
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