Ofwat has recommended a complete overhaul of compensation arrangements for customers, after freezing conditions last winter left many households without water.
The regulator said it would like to see compensation payments for household customers increased to £30 for every 12-hour period they are left off supply.
At present, the Guaranteed Standards Scheme (GSS) means households are entitled to £20 after 12 hours and a further £10 for every additional 24 hours they do not have water.
Ofwat is also looking to make compensation payments automatic and cut out the need for customers to go through the process of applying once their water has been restored.
In addition, Ofwat has also written to Thames Water, Severn Trent, Southern Water and South East Water asking them to identify the issues identified in Ofwat’s recent review into how suppliers handled the so-called “Beast from the East” last winter and the subsequent freeze-thaw incident, which left 200,000 customers without water for at least four hours.
In a report looking at how companies dealt with the storm, Ofwat expressed disappointment at the response of some companies, especially as the severe weather was forecast in advance.
“Being left without a crucial public service like running water causes disruption and hardship and compensation arrangements should reflect the impact on people’s lives,” said Ofwat chief executive, Rachel Fletcher.
“The reforms we are proposing today will aim to ensure that compensation for future supply interruptions is fair, fast and free from hassle.
“As the mercury begins to fall once again, we expect all water companies to have learned serious lessons from this year’s “Beast from the East” and to be better prepared to look after their customers whatever the weather brings,” added Fletcher.
The chief executive of the Consumer Council for Water, Tony Smith said: “These water companies cannot afford to repeat the same mistakes which made life more difficult for consumers than it needed to be.
“We welcome the move to boost compensation but the most important thing is making sure all consumers – including those in vulnerable circumstances – get the support they need during any supply disruption. That includes good communication and extra help accessing emergency water where it’s needed.
“Ultimately companies will be judged on how well they handle the next major incident – if they come up short again we will expect the regulator to hit them hard,” added Smith.