South Staffordshire is once again the top-performing company in the customer service league table published by Ofwat today, achieving the highest SIM score of 89 out of 100, with Thames Water once again scoring the lowest score of 71.
The latest analysis of the companies’ performance data for 2013/14 published today by the water industry regulator sets out the latest average service incentive mechanism (SIM) scores for the 18 water and sewerage and water only companies in England and Wales.
The SIM mechanism is part of the regulatory process for setting the price and service package that each of the companies must deliver in each of the five years of the upcoming AMP6 investment period between 2015 and 2020.
Ofwat introduced the SIM as part of companies’ price controls for 2010-15 as a tool to encourage companies to reduce customer complaints and get things right first time. Each company is given a score out of 100 (their ‘SIM score’) depending on how well they do. The companies independently publish their SIM score each year alongside other information about their performance.
In July the water companies published the information showing customers how they are performing against a range of indicators during 2013-14. This is the third year they have reported information in this way, following Ofwat’s decision in 2012 to change the way that companies report so that they can communicate to customers more effectively.
Overall, the companies reported that they generally delivered good levels of service to most consumers in 2013-14. However, Ofwat says there are areas where they need to improve, in particular sewer flooding and pollution incidents. South West Water and Southern Water are both flagged up with performance is significantly below target or expectation.
In Ofwat’s ‘Setting price controls for 2015-20 – final methodology and expectations for companies’ business plans’ published in July 2013, the regulator said that it would adjust the companies’ price controls for 2015-20 based on each company’s SIM performance.
The companies’ SIM score during the three years 2011-12 to 2013-14 will be used to decide whether they should receive a reward or penalty. The reward or penalty they receive will be in the range of +0.5% to -1.0% of a company’s regulated turnover.
Click here to access the Ofwat SIM league tables data.
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