Speaking up for Water Consumers
Message from the Chair of the Wales Committee
The Consumer Council for Water (CCWater) is now in its sixth year and this Forward Work Programme for Wales sets out our focus for water and sewerage consumers over the coming three years, and outlines how we will continue to effectively represent them.
Last year the Welsh Government and the Department for Food and Rural Affairs jointly reviewed regulation and consumer representation in the water industry. Headed by David Gray, the review recognised that CCWater provided effective consumer representation and strongly endorsed our work and advocacy on behalf of water consumers since 2005. Importantly, it recognised that the water industry is different to other sectors and there is still a major job to do. Based on what we have done, the review concluded that there is a very strong case that CCWater INTRODUCTION should do the job in future: It outlined the importance of a specialist body in the water sector and highlighted the risks of making any changes while there are so many going on elsewhere.
There are many challenges ahead effective for those that need them; in for the water industry and in its helping business customers get more service delivery for customers: we innovative service delivery; ensuring an will continue to play the key role of appropriate response to the long term providing the ‘balancing’ consumer sustainability of the water industry Diane McCrea voice to companies and regulators, and the challenges of climate change. Chair especially during the price setting Consumer Council for Water process; we have an important role We have always promoted and Wales Committee to play for consumers on the creation argued for a regulatory regime where of social tariffs that are acceptable water companies are required and to those that pay for them and are incentivised to use customers’
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Message from the Chair continued
to customers’ satisfaction and Overall as an organisation we have represent good value for money. cut our costs by nearly 20% over the Companies are required to engage past two years, and our staffing by well on customer priorities, and 15% in 2010/11. We are still looking respond to those priorities, to deliver to make further efficiencies without the kind of outcomes that customers compromising the service we offer seek. to consumers. However we are looking to invest in capacity during We are changing our ways of working the period of the Price Review to to a risk-based approach responding ensure customer issues are fully proportionately to the issues that analysed and their issues fully bring most benefits for customers. represented. This would be done We will focus our challenge where we at no extra cost to customers.
INTRODUCTION have concerns on behalf of customers. This could be through our Local In Wales our commitment for Consumer Advocates (the new name consumers and direct work with for Wales committee members to companies and other stakeholders better reflect their new role), or for has delivered real benefits and example, within the new customer gives us a strong base on which challenge groups being established to build as we move forward in a for the next Price Review by Dŵr changing environment. Our aim Cymru Welsh Water and Dee Valley has always been and always will views to formulate business plans. engagement, consultation and Water. In addition, we will hold two be to provide tangible benefits to This approach to regulation is now research during the upcoming price meetings in public each year with customers, and the best value and happening and in response we will review. We will take a view as to water companies - one focussing on most effective service that delivers increase our focus on water whether this engagement has been overall performance and delivery, quantifiable results to all consumers companies’ plans for consumer done well and whether proposals are and the other on water quality. in the monopoly water industry.
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Who we are
We are the independent, statutory water consumer body for Wales “…I value the role of the Consumer and England, with local consumer advocates and offices in Cardiff Council for Water in relation to “We are the and across England. consumer representation in Wales.” independent, “…over the next few years we will see Our Wales team, responding to customers’ enquiries and complaints is based a considerable review and change in statutory water in Cardiff enabling us to develop a real understanding of water consumers’ regulation and strategic planning in the concerns in Wales. Our policy and advocacy work across Wales builds on water sector. The Consumer Council for consumer body and demonstrates the importance of the views of Welsh consumers. Water will have a key role in providing for Wales and critical input to inform these changes We work directly with water consumers, the Welsh Government, regulators over the next few years and to ensure England, with and water and sewerage companies in Wales (Dŵr Cymru Welsh Water, that the interests of customers, both Dee Valley Water, Scottish, and Southern and Albion Water1). householders and businesses in Wales local consumer are represented effectively.” advocates and INTRODUCTION A review of water consumer recommended that CCWater should representation and Ofwat was published continue to do that job. We believe there is more work to be offices in Cardiff in July 2011. This was commissioned done for water consumers. In drafting by the Welsh Government and the The Welsh and UK Governments this Forward Work Programme we have and across Department for Environment, Food announced their decisions in December embraced the vision in the Written England.” and Rural Affairs (Defra) the ‘Review 2011 with the Welsh Government’s Statement and the recommendations of Ofwat and consumer representation Written Statement on Water Policy3, in the ‘Gray Review’. We show that in the water sector2 led by David Gray. and Defra’s ‘Water for Life’4. we are ready and able to take on new Gray recognised the need for “continuing duties and responsibilities, which will effective consumer representation”, We welcome the Welsh Government’s strengthen our role in representing and that the “current functions of the Written Statement on Water Policy business customers, reviewing Consumer Council for Water should in Wales where the Minister for companies’ charging policies, and be retained in any reorganisation of Environment and Sustainable in investigating some complaint consumer representation”. He also Development, John Griffiths stated types currently handled by Ofwat.
1 Severn Trent’s customers in Wales are represented by our Central Committee. 3 The Welsh Government’s Written Statement on Water Policy in Wales 4 2 The Defra and Welsh Government Review of Ofwat and consumer representation in the water sector led by David Gray. 4 Defra’s ‘Water for Life’ publication. back next Forward Work Programme for Wales 2012–13 to 2014–15 Speaking up for Water Consumers
What we do
CCWater represents domestic and business water consumers in Wales and England.
We use consumer research and feedback from domestic and business Our priorities customers to inform everything we do. We take up the complaints of We will continue to be a strong and effective consumer champion in domestic and business consumers where their local water company has delivering the key objectives in this Forward Work Programme for Wales, 5 failed to resolve issues with their water or sewerage services. Our work on while considering the sustainable development of the water industry. We will behalf of water consumers means we are recognised by the Welsh and UK conduct consumer research to make sure our work is focused on what matters Governments, the water industry, regulators and associated organisations to water consumers, and look to other sectors’ evidence where this can inform as the informed, influential and effective water consumer champion. our thinking. The objectives in this Forward Work Programme for Wales are developed from what water consumers continue to tell us are their priorities6. We continue to ensure we are delivering have a say in decisions that affect their Value for Money - A fair, affordable charge for the service and help for best value for customers. We reduced our water or sewerage bill. We also said that those who cannot pay, creating a sustainable water and sewerage service
INTRODUCTION costs by 10% in 2010/11, and almost 10% customers will only accept changes to now and in the future. in 2011/12. We are considering how best to their bills, if companies identify and focus Right First Time - Problems sorted out quickly and without hassle. use our resources to ensure customers on delivering the outcomes customers Water on Tap – Safe, reliable, good quality tap water that is sustainable are properly represented during the Price want and need to have delivered. and consumers use wisely. Review, and in discussions on tariffs and A Sewerage System that Works – Successful delivery of a sustainable complaint handling: this would be at no Ofwat has responded to our suggestions wastewater service with minimal sewer flooding. extra cost to customers. Consequently by creating what we hope will be a more we will still only cost about 21p per bill customer-focused price setting process Speaking up for Water Consumers – Achieve improvements for water payer during the implementation of that aims to involve customers and focus consumers and help local consumers’ views be the drivers of key this programme. on the outcomes customers’ value. Water decisions that affect their water bill and services. companies when preparing their plans for We have advocated change to the way the future must take into account robust still meeting statutory obligations. a risk-based approach. The use of key the industry is regulated to make water evidence of what customers’ priorities performance indicators on customer companies and the water industry are and what they would find acceptable, We have also negotiated for more satisfaction with service and value regulator, Ofwat, more customer-focused. to secure long-term pricing solutions proportionate and targeted regulatory for money should help the regulator We said that water customers should which provide value for money, while attention on issues that need it, using target its scrutiny.
5 Sustainable development is central to all our policy activities and is core in the way in which we operate. 5 More information on our approach can be found on our website. 6 These priorities were first identified when CCWater was established. Our subsequent on-going research since then has refined the direction and approach within these overall objectives. Original research was by Opinion Leader - Shaping back next Forward Work Programme for Wales 2012–13 to 2014–15 the Consumer Council for Water Speaking up for Water Consumers
Changing the way we work
To reflect this different approach to regulation we are changing the way we work. We will use the results of consumer research, customer complaints “We will work about companies that we receive and evidence from Ofwat’s Service closely with Incentive Mechanism and other sources7 to build a picture of customers’ concerns locally and nationally across Wales and England. We will analyse Dŵr Cymru company performance and target our attention towards those companies that are not meeting customers’ expectations. We are adopting this Welsh Water and risk-based approach in response to changes in the wider regulatory Dee Valley Water environment. This approach could help us further reduce our running costs. to make sure the This more targeted, risk-based customers’ expectations to be and will work with Wales companies outcomes of their approach will be the starting point for met by companies, and robustly to ensure that they do so. local interaction with water companies challenging where they do not. decisions reflect INTRODUCTION in Wales. To reflect our change of During the next price review, we approach we have reduced the size of We will work closely with Dŵr Cymru will challenge on the local issues that what customers our committee. Members will now be Welsh Water and Dee Valley Water matter to water consumers through our need and want…” known as ‘Local Consumer Advocates’ to make sure the outcomes of their involvement in the water companies’ and in Wales we have five. Using this decisions reflect what customers customer challenge groups and through risk-based approach, they will focus need and want, while still meeting their the Welsh Government’s Wales PR14 on pushing for: statutory requirements. During price Forum. These groups will build on the companies’ strategic and business reviews and in discussions on charges strong foundations and success of the plans to be driven by customers’ schemes, and on social tariffs, we will be 2009 Price Review’s Wales PR09 Forum. priorities; pressing for customers’ views to inform The water companies will need to listen Governments’, regulatory and company to the views of their customers as they Wales companies to compare decisions. We expect water companies develop their plans and proposals. well in performance benchmarking to identify and address the issues that Each water company’s approach to key with other water companies; matter most to customers, including the decisions will be scrutinised at all effects on different customer groups, stages to ensure that they have
6 7 Complaints data, issues arising from new complaints issues, non delivery of companies’ plans or customer concerns. back next Forward Work Programme for Wales 2012–13 to 2014–15 Speaking up for Water Consumers
Changing the way we work continued
robustly considered the most cost- effective, and sustainable solution to a problem, along with the scope and phasing of the work. The local groups Our achievements on behalf of water consumers in Wales and Wales PR14 Forum will report to the Each year we review our performance and what we have achieved for water consumers in Wales. regulator on each company’s customer We continue to deliver on the issues that matter to them, and our key numbers below show where engagement and their strategic and we have made a difference since 2005 when we were established. business plan. Our aim is that this will deliver improvements which increase £106 – the average amount by 4,810 – the number of consumers complaints against water customers’ satisfaction with service which the Price Review 2009 was we have helped through complaints companies since 2005. and value for money. better for each Dŵr Cymru Welsh work in Wales since 2005. Water customer compared to 2004, 21p – approximately what we will In Wales we will continue to when prices went up by £78. 6,221– enquiries handled since cost each water bill payer in 2012/13,
INTRODUCTION make yearly assessments of water Average prices will go down by 2005 in Wales. nearly a 20% reduction on 2009/10. companies’ customer service and debt £28 in real terms by 2015 management procedures to drive best (excluding inflation). 33% reduction in complaints to Our performance for 2010/11 is practice and delivery for customers. CCWater about water companies in summarised in our Annual Review, and £2.1 m – the amount returned to Wales from 2009/10 to 2010/11. our financial performance is reported customers in compensation and in our Annual Accounts for 2010/11. rebates since 2005 as a result of our 77% reduction in number of work on their behalf in Wales. complaints about water companies You can review these using we have had to investigate since the links below. 18,500 – the number of consumers the peak in 2008/09 to 2010/11. Consumer Council for Water Wales we have helped indirectly by getting Committee Annual Review 2010-11 the water company to give out 50% improvement in customer surface water rebates to eligible satisfaction to 84% in 2010/11 Annual Review 2010-11 customers in Wales. On average with CCWater Wales’s quality each customer received about £79. of service when resolving Annual Accounts 2010-11
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1. Value for Money
OBJECTIVE In order to achieve our objective we will Shaping Our Approach A fair, affordable charge for the service and help for those who cannot pay, work with water companies, the Welsh Use our own and other sources of creating a sustainable water and sewerage service now and in the future. Government, regulators and other consumer research and feedback organisations for the benefit of water as evidence to help shape our own What our work will seek to deliver: and sewerage consumers. We outline approaches to inform Governments’, Water and sewerage customers who are satisfied with what they get for their below what we will do to achieve this. regulators’ and water companies’ money reflecting a greater focus by the water industry and regulator on engaging policies in addressing consumers’ customers in decisions that impact their water bills. Creating a service that will concerns with value for money issues. improve customers’ satisfaction with value for money from its current level of about 72%8. Press for decision making by water companies to reflect water consumers’ A sustainable water and sewerage service where charges are fair and affordable views when they develop proposals for customers. To create a service that improves on the 66% of customers that that affect customers’ bills or service. currently think their water bill is fair; and the 72% that feel their bill is affordable.9
OUR PRIORITIES Be guided by the recommendation 10 Help and protection for those who are less advantaged, vulnerable or cannot from the Gray Review which stated afford to pay their water bill, including delivering social tariffs as supported that the Wales PR09 Forum should be by customers. strengthened and formalised as will happen through the Wales PR14 Forum. Benefits for business and household customers in Wales as a result of innovation and improvements in the water industry in Wales by working with the Welsh Government. Be guided by the recommendations from the Gray Review which stated UK Government’s proposed market reform measures in England do not result that CCWater should have a greater in detriment to consumers in Wales. role in: changes to tariffs and charging proposals – including social tariffs; and helping business customers.
8 CCWater Tracking Research 2011. 10 The Defra and Welsh Government Review of Ofwat and consumer representation in the water sector led by David Gray. 8 9 CCWater Tracking Research 2011. back next Forward Work Programme for Wales 2012–13 to 2014–15 Speaking up for Water Consumers
1. Value for Money continued
What We Will Do Represent customers’ views during Fair Charging represent value for money, and ensure Affordability negotiations with water companies on Help ensure charges are acceptable costs do not fall disproportionately Press for legislation where the design of social tariffs, in line with to customers by, where necessary, on water customers, while ensuring appropriate to deliver solutions to Welsh Government’s guidance on social challenging existing or proposed that companies meet statutory water affordability problems which tariffs, recognising the need for a charging policies so companies fully requirements. are acceptable to customers, by “strong consumer view”, which the Gray understand the views of, and impact working with Welsh and UK Review said would be important during on, different customer groups. Work to keep the cost of the transfer of Governments. the introduction of social tariffs. private sewers down, by encouraging Represent customers’ views and Dŵr Cymru Welsh Water (and Severn Help ensure the affordability of Help low income water customers interests to water companies and Trent for its customers in Wales) to water charges by working with water make regular payments to their Ofwat on charges as the Gray Review have efficient, phased programmes of 11 companies, the Welsh Government, water company direct from their suggested that CCWater should be maintenance, repair and replacement, regulators and non-governmental benefits (as many find this helps “a formal consultee on significant and by challenging companies to deliver organisations. them best manage their finances). tariff changes”. best value for all customers. OUR PRIORITIES
Contribute to the European The Next Review of Water Prices in 2014 Commission’s review of its water In preparation for the next price review policies, so the needs of and the we are working so that customers’ views costs imposed on water consumers shape water companies’ long-term 25-year are considered throughout. We will plans and investment plans for 2015/20. work with Welsh, UK and European At the 2009 price review we did this organisations on common messaging through consumer research, by challenging about consumers’ views. water companies and quality regulators directly, and through the Wales PR09 Work with partners so that Forum process which brought key environmental improvements are interested parties together. This increased carried out in the most sustainable way the transparency of the process by which to ensure bill impacts are acceptable, companies heard customers’ views.
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1. Value for Money continued
The Gray Review recognised industry review and feature, where needed, for household and business support for the Wales PR09 Forum at each key stage of the process. customers and reflect statutory “Make sure process following the last price review requirements. We will achieve this by that customers’ and recommended that it should be Help customer representatives on the negotiating trade-offs where needed “strengthened and formalised”. The local company customer challenge and by working with water companies priorities on price, same recommendation was made for groups and the Wales PR14 Forum and other interested parties in the quadripartite groups in England. We will understand statutory environmental local customer challenge groups service delivery and work in the new local customer challenge and quality obligations where and the Wales PR14 Forum. environment form groups and the Wales PR14 Forum to appropriate, with the assistance build on the success of the Wales PR09 of the relevant regulators. Represent customers on Ofwat’s a key part of water Forum process. We will work to ensure Customer Advisory Panel to ensure that customers’ views are central to Assess whether water companies’ an expert customer view influences companies’ plans” decision making by companies and consumer research and its discussions on issues such as cost of quality regulators, and that Ofwat’s interpretation is robust and capital, efficiency and energy costs.
OUR PRIORITIES decisions are (as recommended by credible, and challenge the Gray Review) “consistent with the companies where appropriate.12 outcomes of the quadripartite process”. Challenge regulators and Welsh To ensure water customers are at the Government to consider affordability heart of the decision-making process and pacing of work to get customer we will: acceptability as they consider Make sure that customers’ priorities effective implementation of new on price, service delivery and statutory environmental investments environment form a key part of over the short and long-term. water companies’ plans by ensuring consumer research and consultation Help ensure companies’ strategic are an integral part of water 25-year and business plans reflect companies planning at the next price customers’ views13, are a good deal
12 CCWater staff will receive training to be able to carry out this function. We will also buy in research expertise where 13 Who will be affected by the proposals. 10 necessary. back next Forward Work Programme for Wales 2012–13 to 2014–15 Speaking up for Water Consumers
1. Value for Money continued
Market reform, Innovation Establish the best option to meet “Deliver benefits and Business Customers in Wales business customers’ needs by for both business Represent the interests of all working with Welsh Government, business customers and work with participating in their business and household the Welsh Government to deliver customers’ forum, and responding benefits for both business and to the Water Strategy for Wales as customers household customers as a result of it explores the role of market reform as a result innovation and improvements in the and regulatory mechanisms in driving water industry in Wales. improvement and innovation in of innovation… ” the industry. Represent all customers in Wales to ensure that UK Government’s Other proposed market reform measures Work with both water companies in in England do not result in detriment Wales to encourage them to see the
OUR PRIORITIES to consumers in Wales. long-term benefit in sharing greater than expected profits with their We will help inform business customers. Options include helping customers about any change in the customers to overcome affordability market and the options available problems, providing extra services, to them. reducing service failures or rebating charges, depending on the priorities Listen to and act on business identified in discussion with customers’ concerns to influence customers and CCWater in Wales. decision making and companies’ policies on issues that matter to business customers, including charging and transparency.
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2. Right First Time
OBJECTIVE In order to make sure water Problems sorted out quickly and without hassle consumers get water and sewerage services which are ‘right first time’, What our work will seek to deliver: we will work with water companies, Consumers’ satisfaction with the service provided by Dŵr Cymru Welsh Water the Welsh Government, regulators and Dee Valley Water improves above 90%,14 so more consumers are happy with and other organisations for the the service they receive. benefit of water and sewerage consumers. We have outlined below Ensuring complaint numbers to Dŵr Cymru Welsh Water and Dee Valley Water what we will do to achieve this. continue to fall significantly from increases in recent years, and move below 11,763 the 2010-11 figure. Shaping Our Approach We will press Dŵr Cymru Welsh Consumer satisfaction with Dŵr Cymru Welsh Water and Dee Valley Water’s Water and Dee Valley Water to act response to contact improves from its current level of 78%,15 to show an on consumers’ concerns and to focus
OUR PRIORITIES increasing focus on getting it ‘right first time’. on improving quality of service by paying more attention to the issues Domestic and business water consumers will be able to find the information that matter to customers, as they need to take action on their water or sewerage problem from our consumer identified from the complaints support website. Increased numbers of consumers who source the answer to we receive, consumer research and work and aim to compare favourably their water or sewerage problem above the predicted 44,000 questions performance in Ofwat’s customer with similar organisations’ complaint 16 answered for 2011/12. Service Incentive Mechanism (SIM). satisfaction scores.
Consumers’ satisfaction with the quality of service provided by CCWater for We will strive for excellence in Work with Ofwat to explore how customers whose water companies have not resolved their complaint, and seek dealing with complaints we receive we could benefit customers by our help to do so, improving towards our benchmark target of 80%. about Dŵr Cymru Welsh Water and taking over responsibility for Dee Valley Water, and will provide some of the complaint handling a fair, effective and consistent that it currently manages, as service. We will benchmark our suggested in the Gray Review.
14 CCWater Tracking Research 2011. 16 Ofwat’s SIM looks at how satisfied customers who contact their water company are. 12 15 CCWater Tracking Research 2011. Number for England and Wales was 69%. Because of respondents in Wales this figure is not significant. back next Forward Work Programme for Wales 2012–13 to 2014–15 Speaking up for Water Consumers
2. Right First Time continued
What We Will Do help them resolve those issues. Improve water consumers’ “Champion Help improve Dŵr Cymru Welsh We will also work with the Welsh experiences of their local water the needs of Water's and Dee Valley Water's Government’s Business Forum to company by working with Citizen’s customer service by identifying explore the needs of businesses that Advice Cymru, Age Cymru and others vulnerable and issues that arise from our consumer operate in Wales. We will engage to understand their clients’ service assessments and focusing on small businesses and ensure their experiences. We will then use less advantaged improving customer service. views are represented through our this information to work with water consumers." response to their complaints and water companies on areas Assess whether Dŵr Cymru Welsh through the information provided that need improvement. Water and Dee Valley Water are on our web support site. sufficiently incentivised to deliver Consider with Ofwat how best to what their customers want and Champion the needs of vulnerable handle some complaints that it where appropriate, are sufficiently and less advantaged water currently dealt with. The Gray penalised under Ofwat’s SIM. We will consumers. From analysis of our Review wanted the “route for
OUR PRIORITIES press Ofwat for a higher penalty or complaints and research findings, complaint” to be clear, and all incentive if evidence shows that the identify if there are “hot spots” in customer complaints to be existing system does not focus deprived areas, and use the data to handled by “an appropriate body". water companies on improving press Dŵr Cymru Welsh Water and customer service. Dee Valley Water to focus specific help for these consumers. Strongly challenge companies to deliver better service when they Continue working with both water are failing to improve and are falling companies for the improvement of behind the rest of the industry. their debt management systems, notices and communications Provide business customers with a specifically to help customers forum to discuss any concerns about in debt as well as helping reduce their water or sewerage service and costs to the wider customer base.
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3. Water on Tap
OBJECTIVE Safe, reliable, good quality tap water that is sustainable and consumers use wisely.
What our work will seek to deliver: Consumers in Wales are satisfied they have a reliable water supply. – using the current level of 97%17 as a baseline.
Consumers in Wales who are currently satisfied their tap water is safe - improving on the current level of 93% satisfied their tap water is safe.
Service and quality standards are maintained and where necessary improved In order to make sure water consumers Be guided by the recommendation through water supply infrastructure resilience. Improve on the 92% of receive safe, reliable, good quality tap from the Gray Review which stated consumers in Wales very satisfied overall with their water supply service, water that they value and use wisely, we that Water Resources Management
OUR PRIORITIES 18 and the 91% of consumers in Wales satisfied with their water quality. will work with Dŵr Cymru Welsh Water Plans (WRMP) should be a key input and Dee Valley Water, Governments, to the companies’ business plans Water consumers increasingly consider their water use and its impact regulators and other organisations. and accepted as such by Ofwat. on water supplies and the environment, improving on the 70% of consumers We have outlined below what we in Wales who currently say they take action to use water more efficiently. will do to achieve this. Acknowledge and consider climate change: its impact on water services, Shaping Our Approach the proportionality of adaptation Use our own and other sources of proposals, and how companies consumer research and complaint communicate these to customers. data as evidence to help shape our own, the Welsh Government’s, Use our partnership work with regulators’ and water companies’ other bodies involving in water policies in relation to drinking water quality and using water wisely quality and water resources issues. to improve service to customers.
17 Percentages quoted here are from CCWater Tracking Research 2011. 14 18 We define satisfaction with quality from Colour and Appearance 92% and Taste and Smell 91% back next Forward Work Programme for Wales 2012–13 to 2014–15 Speaking up for Water Consumers
3. Water on Tap continued
What We Will Do Government’s expected Water and other, such as the Environment Maintaining Supplies in Severe Drinking Water Quality Efficiency Subgroup and partnerships Agency Wales, Countryside Council Weather Conditions Make sure that consumers receive with the water companies, Environment for Wales and the Commissioner for Help secure continuity of services appropriate information on their Agency Wales19, Countryside Council Sustainable Futures. to consumers in severe weather and water supply and quality issues and for Wales and stakeholders such as encourage and support improved and if there is a water quality incident, or the Energy Savings Trust and the Drive for consumers’ views and efficient infrastructure resilience problem; clear and timely advice about Commissioner for Sustainable Futures. concerns to be adequately addressed that has a proportionate impact on the safety of their water supply; and if during any examination of the case for customers’ bills by working with appropriate how to access alternative Press for water companies’ water smart metering by working closely with Government and the companies. supplies, by continuing our work with resource management plans to take the water companies and regulators. the Drinking Water Inspectorate fully into account the needs and Challenge Dŵr Cymru Welsh Water and (DWI), Dŵr Cymru Welsh Water and expectations of consumers, Feed consumers’ perspectives into Dee Valley Water to have appropriate Dee Valley Water and the Water including future consumers, the the development of any company plans to deliver adequate essential Health Partnership for Wales. impact of climate change and drought communication plans so that alternative supplies and effective
OUR PRIORITIES population growth. at times of potential drought water communication with consumers Through our work with the Water companies’ make consumers aware should severe weather impact for Health Partnership in Wales we Ensure Dŵr Cymru Welsh Water and of the developing situation; provide on water quality, or availability. will work to make sure that in the Dee Valley Water have water resource appropriate information and advice, event of unforeseen circumstances management plans which meet their and keep consumers up to date. there is minimal impact on water statutory obligations, and are consumer services. proportionately resilient – depending Encourage water companies in Wales on customers’ requirements and to work to reduce the carbon footprint Water Resources and the Environment consider the impact of climate change. of their water supply operations, Promote the need for and benefits of to help combat climate change. consumers using water wisely and the Ensure there is good communication links between water use, energy use with consumers on the sustainability and carbon emissions, through the of local water resources, working media, our website, through Welsh closely with the water companies
19 From 2013 it is Welsh Government’s intention for form a single environment body comprising the Environment Agency 15 Wales, Countryside Council for Wales and the Forestry Commission in Wales. back next Forward Work Programme for Wales 2012–13 to 2014–15 Speaking up for Water Consumers
4. A Sewerage System that Works
OBJECTIVE In order to make sure consumers receive What We Will Do Successful delivery of a sustainable20 wastewater service with minimal the sewerage service they expect, we Press for consumer benefits to be sewer flooding. will work on consumer-focused solutions delivered by challenging Dŵr Cymru with Dŵr Cymru Welsh Water, the Welsh Water to ensure that the What our work will seek to deliver: Welsh Government, regulators and delivery of its sewer flooding The incidence of sewer flooding in consumers’ properties in Wales reduces, other organisations. We have outlined investment programme meets and the current level of satisfaction with company actions to minimise sewer below what we will do to achieve this. customers’ expectations and flooding improves from 83%.21 is satisfactory. Shaping Our Approach That should sewer flooding occur, Dŵr Cymru Welsh Water will provide prompt Use our own and other sources of Make sure there is appropriate clean–up assistance, advice and compensation, contributing to keeping the current evidence of consumers’ experience and investment to reduce or minimise level of satisfaction with the overall sewerage service in Wales at 89% or above. perceptions to help shape the policies sewer flooding by working with of Dŵr Cymru Welsh Water, Severn Ofwat on a new way of measuring D ŵr Cymru Welsh Water further develops its integrated approach to surface Trent (where they operate in Wales) and the risk of sewer flooding to take
OUR PRIORITIES water management and sewage treatment by working with others22 to limit the other organisations in addressing and account of the issues that are volume of water entering the sewerage system during severe weather. responding to consumers’ issues with important to consumers who their sewerage service, and during have been flooded by sewage. Improved customer satisfaction if research is carried out after severe weather severe weather, such as flooding. has affected services, showing that customers were generally satisfied23 with Help Dŵr Cymru Welsh Water reduce the company’s handling of any problems generated by the severe weather. the risk of sewer flooding caused by (increased) rainfall by challenging or supporting the company to ensure surface water management plans reduce demand on the public sewerage system.
Help make sure that Dŵr Cymru Welsh Water has an adequate
20 Companies should be incentivised to consider the full range of available solutions, so that schemes that deliver 21 Percentages quoted here are from CCWater Tracking Research 2011. solutions in the most cost beneficial and sustainable way for customers are selected, including more sustainable 22 Others include Local Authorities who have responsibility for Surface Water Management Plans, and the Environment Agency. 16 and innovative solutions to sewer flooding problems. 23 We would expect an improvement on the findings of our research into consumers’ reactions on how the company dealt with the back next Forward Work Programme for Wales 2012–13 to 2014–15 management of the incident and on communication, after the loss of water in 2007 following floods in Gloucestershire. Speaking up for Water Consumers
4. A Sewerage System that Works continued
risk of sewer flooding, impacts on customers’ bills and the environment. “Ensure current and future Challenge Dŵr Cymru Welsh Water to develop and ensure that it has robust consumers plans to handle queries and complaints about their programme of repairing benefit from and upgrading former private drains solutions that and sewers, and question Dŵr Cymru Welsh Water should there be minimise the problems in resolving customers’ queries and complaints. impact on bills and the Represent consumers during the
OUR PRIORITIES period to 2015 by working with the environment…” response and effective Ensure current and future consumers Welsh Government to aid the effective communication plan in the event benefit from solutions that minimise communication of the significant of severe weather impacting on the impact on bills and the environment changes to drainage legislation for sewerage services. by supporting Dŵr Cymru Welsh example, Mandatory Build Standards Water’s consideration of low carbon and adoption arrangements for Represent consumers’ priorities in the solutions to sewerage problems. new build gravity foul sewers and development of standards of sewerage sustainable drainage systems (SuDS). and drainage infrastructure resilience Support sustainable drainage and ensure Dŵr Cymru Welsh Water solutions for new developments Encourage water companies in Wales’ have good plans for continuity of and retrofitting of existing to reduce the carbon footprint of services during and after severe developments, as appropriate, their waste water treatment weather with a proportionate to help improve the efficiency of operations, to help reduce the impact on customers’ bills. sewerage services and reduce the impacts of climate change.
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5. Speaking up for Water Consumers
OBJECTIVE Achieve improvements for water consumers and help local consumers’ views be the drivers of key decisions that affect their water bill and services.
What our work will seek to deliver: Governments, regulators, water companies, European institutions and others are An increase in the number of water customers who are registered on Welsh clear about water customers’ views in Wales and these are considered in policy Water Assist (WWA) and WaterSure. An increase of 10% from 18,058 on WWA decisions. Working towards outcomes customers need and want will contribute over the three year period to 2014/15, and from 196 in the number of Dee Valley to water customers’ increased satisfaction with value for money for the service Water’s customers who are registered on WaterSure. they receive from their water company from its current level of about 72%.24 An increase in the number of Dŵr Cymru Welsh Water’s customers registered Water consumers’ issues in Wales are well heard by decision makers as strong links for the company’s special schemes. An increase for Water Collect27 from about with the media will ensure the right message is delivered at the right time. The 4,500; Water Direct28 from about 15,000 and the Customer Assistance Fund29 amount of CCWater’s media coverage will increase by 10% over the three years. from about 3,000. OUR PRIORITIES
Water companies in Wales will communicate well with consumers during any Work with Dŵr Cymru Welsh Water to support increased uptake in the number events that affect the services they provide provided. If research is carried out of Registered Social Landlords (RSLs) adopting an improved type of third party afterwards, it will show that customers were generally satisfied with how the collection agreement (based on Water Collect) to offer better information, company communicated with them. services and assistance for tenants. An increase from the one RSL over the three year period to 2014/15. Empowered water consumers who are aware of their choices including the right to have a meter. This will be shown by an increase to the 64%25 of unmetered water consumers To deliver real change for consumers What We Will Do who are aware they can have a meter fitted free of charge and an increase to the current we will bring customer issues and views Use domestic and business 44% of customers who are already aware they can have a meter for a year’s trial. to the attention of the media, water consumers’ views from research, companies, Governments, regulators complaints, and case studies An increase in water consumers who are registered on the water companies’ and all other organisations and to reinforce our messages in additional services register. An increase of 10%26 from 12,136 over the three year interested parties. We have outlined the media and bring about period to 2014/15 would show more help can be delivered to those who need it most. below what we will do to achieve this. positive change.
24 CCWater Tracking Research 2011. 27 An third party collection agreement which seems to give tenants/water customers better protection and assistance with water 18 25 CCWater Tracking Research 2011. bills. It also offers a £10 discount to water bills. The scheme has been approved by Ofwat. 26 If social tariff guidance states that water companies do not need to offer WaterSure (WWA) if their social tariff 28 Payment of water bill directly through benefits. This scheme offers a £25 discount to bill payer. The scheme has been approved by Ofwat. back next is better than WaterSure – then this line will need reviewing. 29 A restart scheme for those owing £150 or more for water charges. In return for regular agreed payments the water company could write water debt off partly or wholly. Speaking up for Water Consumers
5. Speaking up for Water Consumers continued
Press for Dŵr Cymru Welsh Water Where this can deliver benefits with no “Help water and Dee Valley Water to engage additional risks to water customers, consumers with their customers to develop support the increase in the number of and communicate new charges and Registered Social Landlords (RSLs) who understand tariffs and to inform and manage work with DCWW to change to a newer expectations around bills, reducing and improved type of third party collection the need to use the potential for complaint. agreement and who offer improved water efficiently…” information, services and assistance Help customers to understand their to water customers. bills and make informed choices Help water consumers understand about their water charges and use the need to use water efficiently Help customers with a third party by advising individual customers in a way that takes account of the collection agreement not be threatened and through the promotion of general differences in water use within Wales with possession by working with Dŵr advice, including money saving tips, by working with the media, Dŵr Cymru Welsh Water and Shelter Cymru. OUR PRIORITIES through consistent, regular and Cymru Welsh Water and Dee Valley informed messages in the media. Water and other interested parties. Improve consumers understanding of what they pay for and who to turn to when they Provide a strong clear voice for Increase the uptake of the additional have a problem with their water companies water consumers in Wales to services register, special tariffs such by working with Dŵr Cymru Welsh Water negotiate and influence on key as Welsh Water Assist and WaterSure, and Dee Valley Water and interested issues that could affect water Water Direct, Water Collect and parties on their communications and consumers, such as affordability. Customer Assistance Fund by working educational activities. with the respective water company Continue to represent customers’ operating such schemes, to identify Empower vulnerable consumers at risk views in all appropriate forums, who would benefit and promoting of distraction burglaries to protect particularly through participating the service to them. This will include themselves by working with the media, in the discussions of the Wales ensuring companies undertake Dŵr Cymru Welsh Water and Dee Valley Water Industry Forum (WWIF). effective and targeted communication. Water and other organisations.
19 back next Forward Work Programme for Wales 2012–13 to 2014–15 Speaking up for Water Consumers
The cost of our Forward Work Programme
Water customers pay for all the activities we undertake on their behalf, and with What We Will Do What This Will Deliver this in mind we keep a tight control on our costs. We will: The benefits set out in this Work effectively and efficiently to programme for both domestic and We were set up in 2005, and held our costs flat in real terms until 2010/11 when we ensure we provide improved value business customers at a cost of reduced them by 10% from £6.34m to £5.7m (for Wales and England work). In 2011 for money to water customers. about 21p per annum per water bill. we again reduced our costs to customers by 10% from £5.7m to £5.13m. This is equivalent to approximately 19% overall reduction over the two years. We now Be transparent and open in our Any queries on this programme should cost about 21p per bill payer. approach. be directed to:
CCWater has started changing the way it operates by adopting a more risk-based Continue to deliver tangible benefits Lia Moutselou approach. We will give a closer examination of companies as and when necessary and to water consumers that outweigh Consumer Council for Water will reduce the amount of routine monitoring we do. We are mindful that the joint the costs of CCWater by many times. Room 140
of delivery Welsh Government and Defra Review of Ofwat and consumer representation in the Caradog House water sector led by David Gray suggested that CCWater should take on additional We will act sustainably in all we do, 1-6 St Andrew’s Place responsibilities. These include a greater role representing business customers, including supporting water companies Cardiff scrutiny of water company charges schemes, social tariff proposals plus some to adopt approaches that help to meet CF10 3BE additional complaint handling responsibilities. Our risk-based approach should mean their carbon reduction commitment cost that most additional work can be absorbed within the organisation, with possible and, where appropriate, deliver [email protected] extra resources being funded from our previous savings, without additional cost to solutions that work with the natural customers. We will assess any resource implications should we take on some of the environment. Or: complaint handling that Ofwat currently manages. The Price Review means that some Jennifer Suggate areas of other work have been reduced to reflect the increasing focus on Dŵr Cymru Consumer Council for Water Welsh Water and Dee Valley Water strategic and business plans. We will invest 2 Hide Market selectively in ensuring customers get strong representation in the Price Review; in West Street customer engagement; and as David Gray suggests, during the charges approval St Philips process and on behalf of business customers. We will meet these extra resource Bristol needs from accumulated cost savings brought about by careful management, and BS2 OBH selectively invested to ensure the best result for customers, at no extra cost to them. [email protected]
20 back next Forward Work Programme for Wales 2012–13 to 2014–15 Speaking up for Water Consumers
Annex A
Our consultation on our Draft Forward Responses to Work Programme for England and Wales the consultation The draft Forward Work Programme We received 11 formal responses for England and Wales was emailed to to the draft Forward Work Programme. over 600 individuals and organisations. They were generally supportive of our We also published the draft Forward priorities and direction. Work Programme on our website. We have adhered to the Government’s We have added some additional issues
A nne x es Code of Practice on Consultations. that respondents felt we should be considering, and have also clarified During the final stages of the some objectives or statements that consultation period we contacted respondents commented on. organisations again to ask them for their views on the proposals set out For those who wanted more detail in the draft Forward Work Programme. on our activities, this available in our Operational Business Plan for 2012-13. In drafting the Forward Work This can be viewed here. Forward Programme for Wales we have considered comments The comments on our draft Forward and representations from Work Programme are available on our interested in parties in Wales. website, along with our response.
In addition to this Forward Work Programme for Wales, the Consumer Council for Water has produced a separate Forward Work Programme for England and Wales, which reflects slightly different priorities. This is available on our website here.
21 back next Forward Work Programme for Wales 2012–13 to 2014–15 Consumer Council for Water Consumer Council for Water Victoria Square House Room 140 Victoria Square Caradog House Birmingham 1-6 St Andrew’s Place B2 4AJ Cardiff CF10 3BE