Insights: Ofwat Billing Journeys – Interim Reports

The initial swathe of review of billing journeys in the water sector have been released and make for some uncomfortable reading. Communication and proactive communication is key, as well as risk modelling, good vulnerable treatment processes and signposting for help…

https://www.ofwat.gov.uk/wp-content/uploads/2025/05/Billing_journeys_interim_report_May_2025.pdf

Key Observations by Company

Dŵr Cymru Welsh Water

  • High impact cases prevalent: 34% of customers reported a ‘very high’ impact – highest among companies.
  • Issue type: Mistakes in billing were most common.
  • Experience quality: Average-to-good on communication and action, but qualitative feedback exposed concerns around agent empathy and service tone.
  • Failure point: One in five customers gave up entirely on their billing issue.

Portsmouth Water

  • Low complexity cases dominate: Highest share of ‘low impact’ issues (43%).
  • Issue type: Payment method issues most reported.
  • Satisfaction: Higher-than-average resolution satisfaction; few escalations to CCW.
  • Failure point: Perceived lack of proactivity and understanding of specific customer needs.

South Staffordshire Water

  • Requests for support dominate: Most common issue type, with mixed resolution outcomes.
  • Experience quality: Below average on both communication and action.
  • Failure point: Lack of proactive support and agent expertise; some felt emotionally and physically drained by repeated contacts.

Thames Water

  • High contact volume: 44% interacted with the company 6+ times – highest across sample.
  • Issue type: Mistakes in billing most common.
  • Satisfaction: Strong survey scores on communication/action; however, inconsistency and escalation rates are high.
  • Failure point: Process inefficiencies and inconsistent service quality, particularly for complex cases.

United Utilities

  • Support-related issues lead: Frequent requests for support and vulnerability needs.
  • Experience quality: Rated significantly worse than average on communication clarity and action clarity.
  • Failure point: Inadequate support for vulnerable customers, and repeated failures in follow-through despite promises.
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Cross-Cutting Frameworks & Patterns

Customer Journey Expectations

  • Three-stage expectation:
    1. Rapid initial contact
    2. Clear, compassionate ongoing communication
    3. Timely, tailored resolution
  • Reality: Many customers face a fourth stage – escalation (internally and externally).

Communication Themes

  • Customers want:
    • Fast, accessible channels
    • Personalised, empathetic responses
    • Clear action plans and consistent updates
  • Failing factors:
    • Repetitive information requests
    • Robotic or templated responses
    • Long wait times, especially during urgent financial stress

Action and Outcome Expectations

  • Customers value:
    • Fast issue resolution
    • Acknowledgement of personal circumstances
    • Transparent rationale behind decisions
  • Observed gaps:
    • Lack of follow-through
    • Missed opportunities to provide or signpost to support
    • Failure to recognise vulnerability triggers

Recommendations for Water Companies

  • Segment response models by billing issue complexity and urgency.
  • Triaged communication pathways to fast-track high-impact or vulnerability-related cases.
  • Empower frontline agents with training on empathy, mental health awareness, and discretionary decision-making.
  • Audit and align escalation processes to avoid forcing customers into external complaints.
  • Measure success not only by resolution but by minimising emotional and financial harm.

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