When comparing views on customers’ water providers against the sector as a whole, there is little difference in perception, suggesting this is a challenge the sector faces rather than a case of a few bad apples.
Declining trust amid profit-first perceptions
UK customers’ trust in water and wastewater companies to provide on key responsibilities declined over 2022. Almost two-thirds (38%) of those surveyed say they distrust their water supplier to prevent sewage from entering rivers or seas, whereas other factors included companies’ ability to provide a reliable service and ensure good quality drinking water.
Declining levels of trust are intrinsically linked with wider negative perceptions. Customers were twice as likely to agree that their water company puts the interests of shareholders/owners first (47%) rather than acting in the interests of customers (25%) and the environment (27%).
When comparing views on customers’ water providers against the sector as a whole, there is little difference in perception, suggesting this is a challenge the sector faces rather than a case of a few bad apples.
Around one in five see water companies as incompetent (18%), complacent (18%) and untrustworthy (17%), and two in five (41%) view their water company as profit-first.
The view customers have of suppliers being profit-first coupled with a decline in trust to deliver on key responsibilities highlights a cyclical relationship between water companies and their customers.
Importance of environmental initiatives
When asked about river quality water, over half (55%) stated untreated sewage from water companies as having the most negative impact. Notably, the public is more conscious of the environmental impact of the sector, with a growing minority losing trust in water providers to act in the interest of the environment.
Over the course of last year, disagreement that water companies act in the interests of the environment, rose from one in ten (10%) in December 2021, to nearly one in five (18%) in December 2022.
In contrast, people who think their water provider acts in the interest of customers harbour more positive perceptions about environmental actions, with three quarters (73%) saying they are confident their provider has been taking action to improve river water quality. This audience is more likely to be male, and in the age group of 18-34, with one in six (14%) 18-34-year-olds stating their water provider acts in the interest of the customer compared to one in ten (10%) for those aged 35-54 and 55+, suggesting a generational shift in perception on water providers.
Most notably, customers who know their provider has been encouraging them to save water are more likely to see their company as environmentally conscious (31% vs. 23%) and responsible (34% vs. 29%).
For providers, engagement is the key
The findings demonstrate customers are more likely to view their water company in a positive light if they recall receiving communications that act in their interests or the interest of the local environment.
There is a desire amongst customers to hear more about what their water company is doing, with almost half (47%), wanting to hear more about the steps their provider is taking to improve river water quality, and how they can save more water (35%).
In summary, when water companies are not frequently communicating the initiatives they are implementing, customers are left to fill in the blanks, proving harmful especially when there is negative press coverage. Going into 2023, open dialogues will be the key differentiator between the water providers that sink, and those that swim.
The full report, data tables and an Ofwat blog on the topic can be found here.