Water retailers will be required to return customers’ credit balances and make them aware of the risks associated with advanced payment schemes, in the event of a retailer failure, under new rules.
Water regulator Ofwat approved the change to the non-household water retail code to add protections for business customers.
The Consumer Council for Water (CCWater), a statutory consumer body for the water industry in England and Wales, has welcomed the decision taken by regulator Ofwat to try and ensure businesses are given clearer and more frequent information by the water retailers that bill them on the amount of credit they have accrued on their accounts.
The move comes ahead of the launch of a new campaign by CCW to ensure water retailers return any accrued credit on customer accounts to the businesses they serve on an annual basis.
This would reduce the risk of customers potentially being left out of pocket if a retailer went out of business and also alleviate some of the financial pressure on customers as they overcome the impact of Covid-19.
Christina Blackwell, Senior Policy Manager at CCW, said “These changes to the code of practice mark an important step towards ensuring business customers are better informed about the credit they have accrued on their accounts. Helping customers understand the potential risk of credit building up through advanced payments and the other options open to them is of critical importance to businesses, particularly those still reeling from the impact of Covid-19.”
“This year we’ll be campaigning for even stronger protection for businesses and want to see retailers move towards returning any accrued credit to customers on an annual basis. We’ll also be working with Ofwat and retailers to ensure business customers receive clear communication on their credit and payment options.”