Business water: Watchdog intervenes in compensation battle

08/12/2011

A water watchdog has intervened in disputes between regional newspaper the Argus and Southern Water, over compensation for missed leakage targets.

Consumers have been promised compensation from the water company for their failure to meet leakage targets, but conflict broke out between Southern Water and the Argus over when customers would receive their money.

The Consumer Council for Water has now intervened in the dispute and will meet executives from the water firm following a campaign by the Argus to get customers' rebate now.

Tony Smith, chief executive of the Consumer Council for Water, stated: "We are pleased that Southern Water customers will benefit from this £5 million [pay out], as we have worked hard to ensure that companies return money to their customers when they fail to meet targets rather than pay fines to the Treasury as happened in the past."

"We will be meeting with Southern Water to get a better understanding of the company's position."

Southern Water claims that it was planning to return the £5 pounds in compensation to each customer at the next price review in 2015. However, the local paper has asserted that this is not good enough and has called on the company to push forward their plans for repayment.

The Argus claims that their attempts to make the water company pay out sooner have been backed by politicians across the country and local readers.

An online poll by the newspaper revealed 93 per cent of readers also supported the Argus' position.

As utility costs increase across the country, companies are under pressure to reduce tariffs and improve the transparency of transactions.

Problems are also intensifying in the South, as a water shortage is predicted for the spring.

Consumers will be eager to see Southern Water take positive action on their promise to give customers their rebate in a timely manner.

Posted by Richard Smart