Ofwat and CCW recently published the findings from their research into consumer accountability.

The research was commissioned following the conclusion of the 2024 Price Review (PR24) business planning process for 2025-2030, and the Government announcement of the Water Special Measures Bill.

Specifically, they engaged over 100 members of the public to explore the role consumers want to have in influencing the sector through research and engagement, and how they want to be involved in holding companies to account.

Findings: Influencing the Sector Through Research and Engagement

• Trust in water companies is low, particularly around their willingness to follow through on promises and genuinely listen to consumer concerns. As a result, many fear that research is just a “box-ticking exercise.”
• Consumers are eager to contribute to research when they believe their input can lead to meaningful change, particularly when it benefits the wider public.
• They are most motivated to influence decisions that directly affect them, such as:
  1. Bill impact – including how bills are set, how money is spent, investment decisions, and the affordability of future plans.
  2. Core services – such as the reliable treatment and delivery of clean water.
• While long-term strategies and environmental issues are seen as important, many consumers find these topics less accessible or personally relevant. They often feel underqualified to engage deeply with complex environmental matters and prefer that experts take the lead in shaping these decisions.
• What consumers want most from participating in research is to be heard and to see their input lead to real action. They need clear evidence that their views are being taken seriously and are making a difference.

Findings: Holding Water Companies to Account

• Consumers are dissatisfied with water companies due to poor performance, low trust, and rising bills. They want a stronger role in holding companies accountable through a new consumer accountability mechanism.
• This stems from a perceived power imbalance in the water sector, where companies operate as monopolies with little incentive to prioritise customer interests.
• They are most concerned about serious issues such as supply disruptions, water quality, and environmental impacts like storm overflows.
• While some consider individual actions (e.g. complaints or withholding payment), most support the idea of a collective ‘consumer group’ to represent their interests.
• They want this group to be independent, diverse, and empowered—capable of questioning company leaders, accessing information, and evaluating solutions. Support from independent experts is seen as helpful, especially for complex topics.
• There’s debate over how members of this group should be chosen—balancing the need for inclusivity with the desire for skilled representation.
• Consumers also want transparent reporting of outcomes, including verified progress updates and visible consequences for poor performance.

Implications for the Sector

The evolving customer relationship

• Before PR19, water companies often viewed customers as passive recipients of service—seen but not heard. This dynamic shifted dramatically during the 2020–2025 business planning cycle. With the introduction of clearer regulatory expectations and the C-MeX performance measure, companies were compelled to actively engage customers. It was no longer enough to deliver services quietly; companies had to communicate their identity, involve customers meaningfully, and demonstrate responsiveness—or risk financial penalties.
• This research suggests that customer roles must evolve even further. The key question now is: How can companies embed customers as active partners in service delivery? And more broadly, can this model of engagement be adapted to other regulated sectors? These are critical considerations for shaping the next generation of customer relationships.

Trust and transparency

• While companies are all too aware of the current public sentiment, this research reinforces the urgency: public awareness of industry issues is growing, and trust has been undermined by perceptions of poor performance, mismanagement, regulatory failures, and rising bills.
• To rebuild trust, companies must embrace transparency, foster open communication, and demonstrate consistent, responsible action.
• Companies must also explore new, innovative methods for performance reporting—particularly digital tools and participatory approaches. This would make consumer engagement more accessible and meaningful and help to reinforce company commitments around transparency and accountability.

A new accountability mechanism

• The findings will inform a new accountability framework, with CCW leading discussions on what this could look like. A centralised model can deliver cost and resource efficiencies for water companies by reducing the need for individual setups. However, a key challenge lies in ensuring that such a model remains responsive to companies diverse, localised issues and perspectives. How can a centralised group effectively understand and address these variations?

• Notably, the future role of Customer Challenge Groups (CCGs) and interaction with a new accountability forum remains uncertain.

Looking Ahead to PR29

• The findings will also inform a more nuanced customer engagement approach for PR29. This may involve adopting more sophisticated research methods, including tailored information and flexible engagement options that reflect varying levels of consumer interest and understanding.
• With research and engagement budgets already exceeding seven figures in previous price reviews, PR29 may demand even greater investment. This raises critical questions about value for money. The centralised research conducted by Ofwat and CCW for PR24 received mixed feedback, particularly regarding its high cost. How can future research strike the right balance between robustness, regulatory oversight, and cost-effectiveness?
• Finally, as water companies, Ofwat, and CCW expand their customer engagement efforts, it will be essential to clearly demonstrate how consumer feedback is being used. Equally important is transparency around when and why expert judgment may take precedence over public opinion.

You can read the full reports here:

Water consumer engagement and accountability

1. Part one: Consumer engagement and research – https://www.ofwat.gov.uk/publication/water-consumer-engagement-and-accountability-report-part-one-consumer-engagement-and-research/
2. Part two: Accountability – https://www.ofwat.gov.uk/publication/water-consumer-engagement-and-accountability-report-part-two-accountability/

By Danielle Emerson

Danielle Emerson is Principal Consultant at Skewb. To speak with her about this topic in more detail, you can connect with her on LinkedIn.