In its Annual Review for England and Wales 2014/15 published today, the Consumer Council for Water has described the 2014 Price Review as a “victory for the voice of the customer”, but warned that bills for Thames Water customers will be inflated by the cost of building the Thames Tideway Tunnel, with further increases in the pipeline.

The customer watchdog’ s review explains what CCWater has achieved for customers during what it describes as “a challenging 12 months for the water industry, dominated by the conclusion of the 2014 Price Review.”

Among achievements highlighted by CCWater were:

• Working with the water industry to deliver lower bills over the next five years and more investment in the things that matter most to customers.
• Helping water companies reduce customer complaints to their lowest level since CCWater was formed in 2005.
• Returning almost £2.3 million in compensation and rebates to customers –including nearly £720,000 in the last year for business customers.
• Helping a further nine water companies launch social tariffs to extend support to customers who are low incomes.
• Challenged the water industry to improve customer service and deliver a further 18 per cent reduction in written customer complaints in 2014/15.

Commenting on its work, the watchdog said very little of what had been achieved would have been possible without a willingness from the water industry to listen and act on their customers’ views. Resulting in the most customer-driven price-setting process since privatisation 25 years ago.

The review says that over the next five years most households will see their water bills fall before the impact of inflation, with water companies committed to delivering a huge package of investment. However, while in essence most water customers will receive more for less  CCWater warned that there is still more work to do - the impact of inflation means that most customers could still end up paying slightly more in cash terms by 2020.

Commenting on the £4.2 billion Tideway Tunnel, CCWater said the cost of building the Thames Tideway Tunnel will also increase sewerage charges for Thames Water customers by an average of £7 in 2015/16 – with the prospect of further increases stretching beyond 2020, commenting:

“We pressed Thames Water and the regulator, Ofwat, to make sure affected customers were given a clear explanation of the likely impact this project will have on their future bills. So far we’ve been unable to get the clarity we feel customers need through the communication they’ve received, and we will continue to push for improvements in the coming year.”

The customer watchdog said the media remains one of the most effective tools it has to inform and represent the interests of water customers. During 2014/15 CCWater was rarely out of the spotlight, with its views and customer insight about the Price Review repeatedly sought by BBC TV and radio, along with other national broadcasters and print media. The Review says:

“This gave us a powerful platform to speak up for customers, as well as hold the water industry to account.”

During the year the Council also supported the launch of the Water Redress Scheme (WATRS)in April 2015 as an alternative dispute resolution scheme for customers which provides an independent, binding decision on the water company. CCWater said the scheme should be able to deliver a much faster outcome than the courts.

Click here to download the Annual Review