The Ofwat-commissioned research by consultancy Thinks Insight & Strategy was aimed at better understanding the reasons for billing contacts and complaints, including the experiences of what can be classed as ‘the worst served customers’ in relation to billing, to consider the range of customer experiences, and to highlight any learning and best practice.

The research was carried out in two stages, in winter 2024/25 and spring 2025. Each stage included a survey, an online community and then depth interviews with some of those in the online community who could be classed as the worst served customers. In total, 2,889 customers responded to quantitative surveys, and 132 of these customers took part in further qualitative research.

The research has identified several areas where water companies should improve the experiences of customers when raising billing issues.

The research found that water companies are managing some issues better than others, based on evidence of significant differences in satisfaction with action, communication and resolution, depending on the type of issue raised.

Customers are more satisfied with the response to issues related to payment methods and general requests for support. They are less satisfied with the response to issues related to debt repayment or non-payment, perceived mistakes in billing, and issues related to metering.

The research has identified a number of areas where there is room for improvement.

Water companies should review their response to enquiries where satisfaction is weaker to identify opportunities to strengthen customer support and address any barriers to resolution. Satisfaction is weaker for these issues for both communication and action, showing there are opportunities to improve both customer-facing communications and processes behind the scenes to lead to more positive resolutions.

Some of the issues raised indicate that water companies are causing issues that should be avoided, as well as missing opportunities to proactively identify issues and prevent them from becoming more significant.

Particularly concerning is that some of the billing issues experienced by customers in vulnerable circumstances – particularly for those with cognitive or learning disabilities – relate to water companies not delivering services or support that had already been committed to or not putting in place appropriate, reasonable adaptations for needs that they have been told about.

In relation to proactively identifying issues, leakage issues in particular could be identified sooner. Customers often discover leaks when investigating an unexpectedly high bill, which can lead to significant financial stress. Better early identification of sudden or unusual increases in usage, and proactively sharing this information

Identifying areas for improvement, the research paper says water companies should take a proactive approach to avoid billing issues arising in the first place. In particular, they should ensure they deliver reasonable adjustments requested by customers in vulnerable circumstances, such as those with cognitive or learning disabilities. When issues do arise, they could reduce their impact through early detection.

The report says water companies should take an inclusive approach to customer enquiries to reflect the high number of customers in vulnerable circumstances who are experiencing issues and getting in touch. This means presuming on first contact that a customer may be vulnerable, and ensuring measures are in place to identify vulnerability and understand and record their needs, then to act on this information by offering appropriate support and/or signposting.

For example, water companies should reach out to customers directly if they detect a sudden or unusual change in water usage after taking a meter reading. This could also increase customer trust in water companies, by promoting a sense of shared responsibility for resolving issues. with customers, could reduce both the financial impact on customers and the volume of complaints.

The research paper concludes that many customers raising a billing issue with their water company are dissatisfied with the experience. The poor handling of issues often has a significant impact on customers, particularly those who are in vulnerable circumstances.

In addition, customers often report experiencing poor communication, the paper says, suggesting that there are opportunities to improve both customer-facing communications and processes behind the scenes to lead to more positive resolutions.

Even among the water companies who are doing better, there are inconsistencies across the customer journey and between different issues, and areas for improvement, the report concludes.

Recommendations with regards to improvement include:

Click here to download the full report