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<p>Companies have a statutory duty to provide clean and reliable water to customers
under the Water Industry Act 1991 and water company licences, plus any special requirements
to service vulnerable customers. They also have a statutory duty to plan to balance
supply and demand over the long-term (25 years minimum). Companies should be planning
to be resilient to all foreseeable risks, including severe weather and in response
to climate change projections and population growth.</p><p>Water customers are entitled
to guaranteed minimum standards of service. If a company fails to meet any of the
guaranteed standards, customers are entitled to a payment under the Guaranteed Standards
Scheme (GSS). Ofwat may also take enforcement action against the companies it regulates
where these companies fail to comply with their statutory duties and licence obligations.
Ofwat will work with the water companies to establish whether licence conditions have
been breached and to what extent the GSS regulations require them to make compensation
payments.</p><p>Ofwat is reviewing formally the performance of the companies during
this period once the situation is restored to normal. This will be a thorough review
and as well as identifying problems, Ofwat will identify excellent examples of practice
and preparation shared across the sector. The review will include consideration of
planning for such cold weather events and customer communications. The government
will consider any recommendations from the review and act decisively to address any
shortcomings exposed.</p><p> </p><p>Ofwat will also consider as part of the review
whether the companies have proactively provided fair and speedy compensation to customers.
The government has made clear to water companies that it expects them to use their
discretion to offer compensation to customers, recognising the impacts that they have
experienced.</p><p> </p>
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