Ofwat has been asked to report to the government by the end of the month with “initial lessons” about water supply disruptions throughout the country following the cold spell and rapid thaw.
Speaking in parliament on Tuesday (6 March) environment minister Thérèse Coffey said she expects Ofwat to formally review the performance of water companies.
She said: “Once the situation is restored to normal, we expect Ofwat to formally review the performance of the companies during the period. That will be a thorough review.
“As well as problems being identified, I want to see excellent examples of practice and preparation shared across the sector.”
She added: “The government will consider any recommendations from the review and act decisively to address any short-comings exposed.”
Having chaired a meeting with water company chief executives, Ofwat and Water UK, earlier that day, Coffey said as well as statutory compensation, water companies will want to consider how they compensate customers on a “discretionary” basis.
Coffey acknowledged this month’s review, “may be only an interim one” with initial lessons about what has happened.
She said: “Tens of thousands of people across southern England have experienced loss of water supply in their homes, and even more have had to cope with low water pressure following leaks from burst pipes. I entirely recognise that it has been a stressful and difficult time for many residents and businesses.”
Coffey explained the government has “high expectations” of water companies increasing their investment in water and sewerage networks.
Labour MP for Halifax Holly Lynch, questioned: “Where is the resilience in the system and why have we seen such systemic failure?”
She added: “We have had tough words from both the secretary of state for the environment, food and rural affairs and Ofwat, but where is the governance, and where is the action?”
Earlier this week, Ofwat accused several water companies of having “fallen well short” on their forward planning to ensure the recent adverse weather did not impact water supplies.
The regulator warned it “won’t hesitate to intervene” if it finds companies have not had the right structures and mechanisms in place.
The aftermath of the freeze dubbed the “Beast from the East” and the rapid thaw resulted in supply disruptions across London and the South East. Parts of the Midlands, Yorkshire, Scotland and Wales have also been affected.
Meanwhile, a burst main flooded Tooting in south London yesterday morning (7 March). Thames Water said its engineers reached the scene “very quickly” and stopped the flooding.
The company has come under criticism from the mayor of London, Sadiq Khan, who described the water shortages earlier in the week as “unacceptable”. He said some residents in the capital had been left without water for four days.
Khan expects “generous compensation” to be issued to those affected.