Water sector regulator Ofwat is stepping in to put a series of interim measures in place to help business customers struggling to pay their water and sewerage bills on time as a result of the ongoing Covid-19 coronavirus outbreak.
Water sector regulator Ofwat is stepping in to put a series of interim measures in place to help business customers struggling to pay their water and sewerage bills on time as a result of the ongoing Covid-19 coronavirus outbreak.
Launching a consultation with a 3 day deadline to comment on its proposals, Ofwat said the coronavirus emergency is expected to have a significant effect on water consumption. It is therefore putting in place interim measures aimed at ensuring charges more accurately reflect reduced levels of consumption.
Ofwat said that the Change Proposal is urgent because of the “profound and widespread effect that Covid-19 is having on the UK” and the immediate impact that this is likely to have on non-household customers of retailers operating in the business retail water market.
The regulator said it was also expected to result in business customers struggling to pay their water bills on time so Ofwat has also put in place interim measures to temporarily defer the payment by retailers of some wholesale charges.
According to Ofwat, the systematic closure of businesses resulting in the imposition of legislation on 26 March 2020 making restrictions on opening enforceable by law means that businesses may struggle to pay their water bills on time. In addition, businesses that are permitted to remain open may have to operate with reduced staffing due to illness affecting output and cash flow.
Due to the extraordinary measures taken by the UK government to address the spread of the coronavirus, and the speed at which these measures have been imposed, the regulator said it now needs to take action to ensure that businesses are not under threat from disconnection for the non-payment of charges and enforcement or the collection of interest on non-payment.
Ofwat said:
“Where customers are able to pay on time we expect retailers to continue to collect charges and to use these to fund the payment of wholesale charges. Where it is clear that customers cannot pay on time for reasons relating to Covid-19, we do not expect retailers to chase payment, charge interest or disconnect customers.”
Ofwat is inviting comments on its proposals – deadline to respond is 12 noon on Thursday 2 April 2020.
The regulator will then issue its decision on Friday 3 April 2020, with expected implementation of the measures due to take effect from 6 April 2020.
Click here to access the consultation document.
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