02/11/07
Ofwat's publication of Debt and disconnection figures 2006-07 at the end of September led inadvertantly to some misleading press and unjustified criticism of water company practice in a sensitive matter.
The mischief was caused when Citizens Advice contacted Guardian Money (as you do) with a claim that "firms chasing bills are threatening disconnection on the grounds that the house has become empty when they know – or should know – it is occupied".
Unable to resist a 'Guardian Money can reveal' moment, the newspaper used the story as a dominant cover graphic with man in hard hat, axe over shoulder walking away from a decapitated tap.
The facts are: that disconnections have increased; that the main reason is more customers asking to be disconnected; and that companies use 'void property notices' (stating that a property is believed to be empty and is to be disconnected) to reduce leakage and the risk of contamination, not as a debt recovery procedure.
Ofwat reports a rise in "pre-court action notice" letters to customers in arrears, but a fall in county court claims and judgements due to companies selecting more appropriate recovery methods where it is clear customers cannot pay.
Water companies are using many different methods to help people pay and cut the number of long-term debtors which has grown steadily since the threat of disconnection was removed in the 1999 Water Act. "Intimidating customers" (Guardian Money) and men with axes are not among them.
Contact: Barrie Clarke
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