Committee publication · Correspondence · 16 July 2026
Letter from the Interim CEO of Ofwat relating to Regulating water, energy and broadband, dated 13 July 2026
Summary
Interim CEO of Ofwat Chris Walters writes to the Public Accounts Committee following his 29 June 2026 appearance on the NAO's report on regulating water, energy and broadband. The letter provides detailed information on Ofwat's research into Priority Services Register journeys, company performance on customer debt repayment plans, and clarifies the role of the Consumer Council for Water alongside emerging statutory ombudsman reforms.
Key findings
- Ofwat published Priority Services Register standards from 1 April 2025 requiring all companies to provide clear criteria and services for vulnerable customers; pilot research (July 2024) found generally positive experiences but highlighted inconsistencies between companies and areas for improvement
- Joint research with Ofgem (December 2024) based on 31 customers identified that vulnerable customers lack awareness of available support and experienced mixed service; key principles identified: proactive/flexible approach, clear journeys, empathetic interactions
- Company repayment plan take-up for customers in arrears ranges from 6% (Affinity Water) to 68% (South Staffordshire Water) in 2024-25; sector average 33% for active customers; overall uptake improved from 22.7% to 25.1% year-on-year but Ofwat expects further progress
- CCW research found 60% of Priority Services Register customers were fairly or very satisfied; however, Ofwat continues monitoring examples of failures, notably South East Water's Kent and Sussex supply interruptions which triggered investigation under customer-focused licence condition
- Consumer Council for Water provides complaint handling and consumer representation; Defra is consulting on establishing statutory water ombudsman; Water UK appointed Dispute Resolution Ombudsman in April 2026 following cessation of CCW's alternative dispute resolution service
Tone
ProceduralTopics
Key actors
Chris Walters, Ofwat, Consumer Council for Water, Ofgem, South East Water, Department for Environment, Food and Rural Affairs, Money and Mental Health Institute, Kidney Care UK
Notable line
“… we continue to see examples of customers being let down, including during incidents, most recently and notably the supply interruptions in Kent and Sussex.”
Key Quotes
“The overall learnings from this pilot were that customer journey experiences were generally positive overall. However, it also highlighted areas for improvement including inconsistencies between companies, chatbots, and smoother sign-up processes.”
“… customers: lacked awareness and understanding of the services available, and had mixed experiences when seeking support as part of a customer journey.”
“… we continue to see examples of customers being let down, including during incidents, most recently and notably the supply interruptions in Kent and Sussex.”
“While uptake improved from 22.7% in 2023-24 to 25.1% in 2024-25, we expect further progress.”
Source · parliament.uk record ↗