16 January 2004
The chair of the Commons Public Accounts Committee has condemned the level of compensation paid to households flooded by sewers as 'deplorable'.
Commenting on a National Audit Office report, which noted that 5,000–7,000 properties in England and Wales are flooded from the public sewer network each year, Edward Leigh said the low payout levels 'added insult to injury'. 'Payments should increase to reflect the damage and distress suffered,' he said.
Legally, water companies are required to pay an average of only £125 to affected customers for each incident. This tends not to reflect the degree of damage incurred, although the water regulator Ofwat encourages companies to make further payments.
The NAO report, published on January 16, praised the work done by water companies to alleviate the risk of sewer flooding. Since 2000, this risk has been removed by 3,300 properties. The number of properties reported to be at risk has been reduced to 11,600 in 2002/03 from more than 30,000 in 1995/96.
The severest problems are estimated to cost water companies £1.6bn a year. The NAO urged Ofwat to encourage companies to put in place a robust economic approach to assessing the balance between cost and benefit and help them prioritise.
The NAO said water companies, regulators and the government should work together to clarify responsibilities and establish the long-term needs of the sewer network.
Leigh added: 'While it is good that the number of homes considered to be at risk of sewer flooding is declining, it is vital that government and industry look to the future and ensure that the network is able to cope with the demands placed on it.'
PFjan2004
