Written complaints from business customers to water retailers have risen for the second successive year – they are now 52% higher than before the retail market opened in England, according to a new report by the Consumer Council for Water (CCWater).

Three water retailers in England have been reprimanded for their poor performance after water and sewerage complaints from business customers rose sharply for the second successive year.

Today’s report by the Water Watchdog shows that many retailers have failed to stem the flow of complaints, which have risen rapidly since non-household customers in England were given the freedom to switch supplier two years ago.

CCWater has criticised the poor performance of the water market’s biggest retailer, Water Plus, along with smaller suppliers - Clear Water Business and Everflow - for their part in fuelling a 20% increase in written complaints during 2018/19.

Eight retailers in England and one water company in Wales – where the market does not apply - saw complaints increase, with CCWater carrying out 58 investigations, more than double the previous year.

Overall, business customers had to make almost 18,000 written complaints to retailers and water companies during 2018/19 - meaning they are now 52% higher than before the launch of competition. Inaccurate bills and disputes over charges also sparked a 43% increase in complaints from businesses to CCWater.

A recent study by CCWater also found that satisfaction with water services and trust in water companies had fallen among non-household customers in England since the market had opened.

"Complaints rising while customer satisfaction levels head in the opposite direction”

Robert Light, Chair of the Consumer Council for Water, said:

“Choice promised to improve service for business customers, but instead we are seeing complaints rising while customer satisfaction levels head in the opposite direction.”

“Poor performing retailers and water companies have had long enough to iron out these problems and the excuses won’t wash with us or customers. We want to see the regulator take action where companies are not fulfilling their obligations.”

Water Plus was the worst performing company - the complaints it received rose by more than 70%, based on the number of customer supply points. CCWater investigated 21 complaints against the retailer – seven more than any other company- as it struggled to resolve billing problems. It has implemented an action plan after coming under pressure from CCWater to improve – the watchdog said this needs to deliver substantial improvements in the coming year.

Other companies to raise serious concerns were Clear Business Water, which was the worst performer for complaints made to the watchdog, and Everflow which has been criticised in the report for its slow response to customers.

CCWater will monitor the performance of retailers closely during the year and highlight the worst performers every quarter.

There was better news for customers of Business Stream, Affinity for Business, Water2Business and the companies in Wales – Dŵr Cymru Welsh Water and Hafren Dyfrdwy – who were among the best performers. First Business Water and the Water Retail Company also only received one written complaint, while many of the other smaller retailers did not report any.

Charley Maher, managing director of water2business, who received the lowest number of complaints for the second year running in 2018/19, said it was disappointing to see that across the whole industry complaints had risen in the last year, commenting:

“Admittedly, our figures have increased in line with this, albeit a large proportion of this increase is down to wholesaler issues such as poor market data and delays to customer leak allowances. Customer service should be a top priority for all retailers, but also for regional water companies, who have a duty of care to provide wholesale services to the highest standards.”

“Our customers have always been our primary focus, so it’s extremely rewarding to have retained our position as the best performer when it comes to complaints.

“Despite having the least number of complaints at water2business, we acknowledge that there is always room for improvement and no room for complacency.”

Water companies, which continue to supply and treat water as well as maintaining the network, have also not escaped criticism in the report. Retailers reported almost one in four complaints made to them involved problems with wholesalers. CCWater has also helped many customers who have found themselves caught up in the middle of a dispute between the two parties.

Collaboration is beginning to improve but CCWater said it will continue to work with retailers and wholesalers to ensure communication is more seamless and complaints are resolved quickly for customers.

In response, Andy Hughes, Chief Executive of Water Plus said the CCWater figures were historic and the first quarter of this financial year had seen a drop of around 40% for complaints. The significant investment the firm had made in 2018 in systems, processes and people, including increasing the number of people in its call centre, was continuing to make a difference in 2019, reducing delays for customers, and enhancing the services for new and existing customers.

“We’ve seen substantial progress as a result of this, including reducing complaint levels with further analysis of root causes to further improve our services and prevent future complaints – and we’re confident we can build on this, doing more on this area, continuing our efforts to help our customers.” Andy Hughes added.

Click here to read the full report