Water retailers may be prevented from disconnecting customers for non-payment, or beginning debt recovery if an amendment to the Customer Protection Code of Practice (CPCoP) is approved by Ofwat.
Watchdog CCW proposed the change to provide more protection to business customers affected by Covid-19.
The CPCoP sets out obligations for retailers to safeguard non-household customers.
At present it states that retailers should offer tailored repayment schemes to businesses affected by the pandemic. Retailers are required to fulfil their obligations under the repayment schemes before issuing a disconnection notice.
Ofwat said it received evidence from CCW that suggested retailers were not always following the processes correctly or fairly.
The amendment would apply exclusively to business customers that have been required to close by law and that are completely shut.
The regulator, which has powers to enforce the CPCoP, said it would work closely with CCW to use its powers where it sees evidence of customers not being treated fairly.
In a joint statement to the non-household sector the regulator and watchdog set out expectations to follow during the pandemic.
It said retailers must communicate clearly with customers; offer tailored protection that reflect individual customers’ circumstances; keep meter reading data up-to-date to ensure bills accurately reflect consumption; put payment plans in place; and ensure they can demonstrate they have understood customers’ position and adjusted payment plans appropriately before considering debt recovery or other legal actions.
Ofwat will gather further information and evidence before approving any changes to the CPCoP.