Waterwatch Scotland says even though five companies are licensed to provide water to non-domestic customers, just one of them – Scottish Water’s own subsidiary Business Stream – has more than 90% of customers.

In its first report on retail competition, the watchdog says there is a potential clash of priorities for the regulator, the Water Industry Commission for Scotland, in acting as both market developer and market regulator, and gives an insight into customers’ experiences to date:

1. The retail framework is not working well for all customers – the number of contacts from customers to WWS now far exceeds pre-competition levels:  then, the non-domestic sector accounted for only one in four contacts/complaints, now it accounts for half;
2. Many business users are still not fully aware that competition exists and many of those trying to switch are experiencing difficulties;
3. Some customers are describing the new market framework as ‘so called’ retail competition due to suppliers not always providing the services to customers that they are required to provide;
4. Waterwatch Scotland has noted a marked increase in customer complaints about billing and customer service;
5. Customers are frustrated by extra bureaucracy e.g. Difficulties with New Connections and loss of previous benefits, such as Leakage Allowance.

WWS Convener, Heather Brash, says that while Scottish Water’s services to domestic customers are improving, services for many non domestic customers are not.

“Non domestic contacts have increased beyond the level they were at before retail competition was introduced. Where once Waterwatch Scotland would get one non-domestic complaint or inquiry for every three from householders, there are now times when it’s one for one which is simply unacceptable when there are barely twenty times as many homes than business properties in Scotland.  After a promising start, Waterwatch Scotland has seen a marked increase in customers expressing dissatisfaction regarding Business Stream. The fact that the majority of complaints are about billing suggests that there is a lack of focus on dealing with billing enquiries / complaints including inaccurate customer details and meter reading issues. This is compounded by a more aggressive approach to implementing its debt recovery policy which is a cause of anxiety for many customers who fear the threat of disconnection.”

Waterwatch Scotland says when some customers have approached licensed providers to switch or for new connections, regardless of where they’re from, they have been met with an unwillingness to take them on as new customers or have been treated with general indifference. Waterwatch Scotland has raised such concerns with WICS and its approach to such potential licence breaches. People are now asking if the regulator, with its dual role of having to develop and to regulate the market, is trying to avoid making it too tough for operators.

Heather Brash says: “Until this market matures, non-domestic customers need to be assured that the water suppliers are being held to account properly in exactly the same way as Scottish Water is for supplies to households.  Waterwatch Scotland has no problem with the principle of competition in the non-domestic water and waste water market, but any competition has to be real competition with customers able to choose from a range of suppliers who will compete strongly, by bringing down prices and driving up standards of service. The experience we have is that many customers do not yet feel the market is working in their favour as well as it could be.

“What we have at the moment is one dominant player generating a marked increase in customers raising issues with the industry watchdog, and little evidence that the necessary steps are being taken to address the monopoly by making the option of switching a well publicised and straight-forward option for all businesses in Scotland.”

Notes to Editors

To view the report, click on:

The Introduction of Competition into the Scottish Water Industry: A Customer Perspective (PDF 476kb)

The five licensed water providers in Scotland are

• Business Stream
• Satec
• Osprey
• Aimera
• Wessex Water Utility Solutions

• There are 130,000 non domestic and 2.4 million domestic properties in Scotland

Recommendations

Waterwatch Scotland, in the report The Introduction of Competition into the Scottish Water Industry: A Customer Perspective, recommends that

1. An industry mechanism is developed to identify and resolve existing teething problems created by the competitive framework itself and that lessons learnt from existing issues are shared and used to ensure the smooth delivery of any extension to the competitive framework i.e. cross stakeholder forum.
2. The roll out of competition should continue, however greater work is required by industry stakeholders to raise awareness of non domestic competition and the options / benefits available to non domestic customers.
3. Customer experience of competition should be further investigated, in particular, availability of choice in different parts of the country, ease of switching for customers and default service standards delivery. As a minimum, WWS and WICS should have regular sharing of information on these and other issues.
4. A transparent scrutiny and reporting mechanism should be developed as an interim measure which would allow the industry and customers to track improvements / decline in service delivery and to hold licensed providers to account.
5. An exercise similar to that of a ‘mystery shopper’ should be implemented as part of a formal scrutiny process to establish the extent to which all Licensed Providers are providing the default services required of their Licence Condition. WICS should take action against those that are in breach.
6. A review of licensed providers’ and Scottish Water’s approach to section 29E should be undertaken with a view to making recommendations which would encourage greater innovation within the market place.

Waterwatch Scotland (WWS) is the national complaints handling authority for all domestic and non-domestic water customers and customer representative body for the water industry in Scotland.

WWS is independent of Scottish Water, government and other water/sewerage service providers.  Its role is to:

• Investigate Complaints
• Represent Customers’ Views & Interests
• Influence Policy
• Inform & Advise

WWS’ responsibility for second-tier complaints handling means that WWS can take forward individual customer grievances against Scottish Water or other providers.

WWS can also make statutory recommendations to Scottish Ministers, Scottish Water and other service providers, and industry regulators:  Scottish Environment Protection Agency (SEPA), Drinking Water Quality Regulator (DWQR) and the Water Industry Commission for Scotland (WICS).

From time to time, WWS receives complaints which are of such importance or have a public-interest impact beyond the specific complaint itself, that WWS will issue a formal report on the complaint and greater issues raised.

In addition to the making of such formal reports and the findings and recommendations made, a key role of WWS is to continue to work to ensure that such recommendations are adopted in the interest of customers to mitigate and prevent future occurrences.

Issued on behalf of Waterwatch Scotland, Corporate Office, Forrester Lodge, Inglewood, Alloa, FK10 2HU

Downloads

Scottish Household Water and Sewerage Debt (PDF, 63 pages, 1.5Mb)

Waterwatch Scotland is calling on Scottish Water and the country’s local authorities to work with them to ensure customers receiving Council Tax benefit know that they still need to pay their water and sewerage charges.

The water watchdog says that better information might go a long way towards addressing the worsening water debt problem.

Figures contained in Scottish Household Water and Sewerage Debt report, which the water watchdog has published today, show that the amount outstanding for the period 1996/7 to 2008/9 stood at just over £335.1 million. The corresponding figure at 31st March 2008 for the period 1996/7 to 2007/8 was £306.2 million.

Gary Womersely, Chief Executive of Waterwatch Scotland, said: “The Water Industry Commission for Scotland (WICS) and Scottish Water have done a remarkable job developing the country’s water infrastructure while attempting to keep prices down. But a freeze in water charges does not necessarily mean affordable water charges and we are concerned that those in receipt of social security benefits are finding it ever more difficult to pay their bills, if indeed they realise that they are responsible for paying them at all.”
There is no dedicated social security benefit for those unable to meet their water and sewerage charges. Instead the personal allowance element of the income support payment is judged to be adequate to cover living needs and expenses, and this includes weekly water charges.

“In recent years increases in the level of social security benefit have failed to keep pace with rising water and sewerage charges. Although an element of financial relief is available, it is still only a quarter of the total bill leaving the householder struggling to make up the shortfall.

“While we realise that the benefits system is a reserved issue, we would urge the Scottish Government to work with Westminster and the other devolved administrations to address the current failure of social security benefits to make available adequate support to those who are struggling on low incomes,” said Mr Womersley.

“We all have a role in dealing with debt. Waterwatch Scotland would also be happy to work with Scottish Water and all 32 local authorities to ensure improved communication with customers in receipt of Council Tax benefit and help look at the way bills and information are provided to customers so they can fully understand their bills and what they should pay.”

Notes for editors

To view the report, click on:

Scottish Household Water and Sewerage Debt Report (pdf 1.5Mb)

Report recommendations

• That Local Authorities, Scottish Water and Waterwatch Scotland should work in collaboration to improve communication with customers in receipt of Council Tax benefit to explain their continuing liability for water and sewerage charges.  Attention should be given to the format and content of bills and any supporting documentation supplied to households.
• That Local Authorities and Scottish Water should continue to collaborate in developing further an approach to arrears management and debt recovery that takes into account the circumstances of individual debtors.
• That the Scottish Government should work in conjunction with industry stakeholders (including Local Authorities, Scottish Water, WICS, WWS, CAS, the ‘third sector’ etc.) in undertaking a review of the effectiveness of the range of financial supports available to those unable to pay their water and sewerage charges. This report repeats the call, previously made in the 2008 WWS Affordability Report (Waterwatch Scotland 2008) that the review should address the following issues:
  • the ineffectiveness of the current permanent Water Charges Reduction Scheme in targeting and providing financial relief to households unable to pay for water and sewerage charges;
  • the shortfall between social security benefit and Water Charges Reduction Scheme support available to low income households, and actual water and sewerage charges, and the effect of this on levels of household water and sewerage debt;
  • the question of whether, in principle, financial support for low income households to meet charges should come through the tax and benefits system or from other customers;
  • that, in light of the review, the Scottish Government should work with the UK Government and the devolved administrations in Northern Ireland and Wales to address the failure of current social security benefit arrangements to make available adequate financial support to qualifying households unable to meet their water and sewerage charge liabilities.

To seek an interview with Waterwatch Scotland, please contact Andrew Ritchie on 0131 556 0050 (including out of hours)
Waterwatch Scotland (WWS) is the national complaints handling authority for all domestic and non-domestic water customers and customer representative body for the water industry in Scotland.

WWS is independent of Scottish Water, government and other water/sewerage service providers.  Its role is to:

• Investigate Complaints
• Represent Customers’ Views & Interests
• Influence Policy
• Inform & Advise

WWS’ responsibility for second-tier complaints handling means that WWS can take forward individual customer grievances against Scottish Water or other providers.

WWS can also make statutory recommendations to Scottish Ministers, Scottish Water and other service providers, and industry regulators:  Scottish Environment Protection Agency (SEPA), Drinking Water Quality Regulator (DWQR) and the Water Industry Commission for Scotland (WICS).

From time to time, WWS receives complaints which are of such importance or have a public-interest impact beyond the specific complaint itself, that WWS will issue a formal report on the complaint and greater issues raised.

In addition to the making of such formal reports and the findings and recommendations made, a key role of WWS is to continue to work to ensure that such recommendations are adopted in the interest of customers to mitigate and prevent future occurrences.

Issued on behalf of Waterwatch Scotland, Corporate Office, Forrester Lodge, Inglewood, Alloa, FK10 2HU

The purpose of this study is to identify organisations that do not currently have a water efficiency strategy. Focusing on such organisations, a study can then be carried out to quantify water savings before and after efficiency measures have been introduced.

Downloads

Water Efficiency in Scottish Housing Associations (816Kb PDF, 17 pages)

Pilot projects would ideally be organisations that currently have no water efficiency strategy or working plan. This would allow a study to be carried out involving retrofitting premises with water efficient devices allowing measurement of water usage to be carried out before and after fitting to determine water savings. The group agreed that two schools would be identified and approached for study.

Following work that Waterwise has been progressing with English Local Authorities and Housing Associations, the working group agreed that it wished to carry out a study on Scottish Local Authorities (LAs) and Housing Associations to provide an overview of current and future water efficiency activity.

Downloads

Water Efficiency in Scottish Local Authorities – A Study (644Kb PDF, 12 pages)

Downloads

Summary report (120Kb PDF, 3 pages)

Full report (260Kb PDF, 58 pages)