Ofwat and CCW have issued a joint statement on Covid-19 and the impact of the second national lockdown on the business retail market.
The statement sets out Ofwat and CCW’s joint expectations of water retailers in their approach to ensuring customers are treated fairly during this period, including in relation to pursuing disconnection or legal action against customers affected by Covid-19.
Water sector regulator Ofwat is currently considering proposed amendments to the Customer Protection Code of Practice (CPCoP), following a code modification proposal from consumer watchdog CCW that seeks to deliver greater protections for business customers. Ofwat has also received a proposed amendment to the CPCoP from Castle Water, which we are still considering.
In the interim, the statement says the organisations expect all retailers to be vigilant to the specific circumstances of their own customers and to make sure that they are really aware of how their customers are being affected by Covid-related restrictions and to react accordingly.
The current requirement in the CPCoP requires retailers to provide business customers affectedby Covid-19 with a repayment scheme tailored to their individual needs and to continue to offer Covid-19 repayment plans until at least 31 March 2021.
The joint statement, signed by Emma Kelso Senior Director, Markets & Enforcement at Ofwat and Emma Clancy Chief Executive at CCW says:
“However, there will inevitably be business customers who have been forced to close as a result of the second national lockdown and who may not be in a position to pay their water and waste water bills, or who may need further support from their retailer. At a minimum the organisations expect retailers to:
- clearly communicate the protections in place for customers impacted by the pandemic. This includes direct contact with customers, signposting information and advising customers about the options available to them on their websites;
- understand how customers are being impacted by the current restrictions and clearly explain the protections available to them, which should be tailored to their specific needs;
- make sure that bills reflect actual consumption by obtaining a meter read (where possible and safe to do so, including for the customer themselves), or reflect agood quality estimate based on an understanding of the Covid-19 impact on thebusiness;
- put appropriate payment plans in place if companies can’t pay because of Covid19; and
- ensure they are able to demonstrate that they have listened to and understood the customer’s position, and made appropriate adjustments to any payment plans inplace before considering any forms of legal redress.
Click here to read the joint statement in full
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