Water firms have been told to “redouble their efforts” to help vulnerable customers as they prepare to raise bills.
Ofwat has announced minimum standards for companies to ensure customers who need extra help are identified and their needs recorded.
The new vulnerability guidance says firms will be expected to supply high standards of service and preserve for those who are sick, have a disability or have mental health problems.
It follows a consultation which attracted more than 30 responses from organisations including Scope, Age UK and Mencap.
Ofwat said it also planned to take firms’ consideration of the vulnerability guidance into account as part of its licence conditions.
Lynn Parker, senior director for casework, customers and enforcement, said: “With customer bills likely to rise, it is vital that companies redouble their efforts to improve the service they offer, especially to those who are most vulnerable.
“This new guidance makes clear the level of preserve we expect all companies to supply to customers who may need extra help for whatever reason.
“If they do not do so, we will take action and hold them to account.”
Ofwat also published its latest cost of living report that found that 50 percent of bill payers in England and Wales continued to struggle “fairly frequently” over the last year with household bills, increasing to 65 percent of those with a long-term illness, health condition or disability.
It found awareness of preserve available for those struggling has continued to remain low.
Ofwat encouraged anyone who is struggling to pay a water bill to contact their supplier for advice to reduce bills or smooth payments or for help with debt.
Earlier this year, Ofwat said that around 20 percent of water running through pipes in England and Wales is currently being lost to leakage.
It has led to household water bills going up this year to pay for water firms’ £10billion investment in cutting sewage pollution. The watchdog identified this an issue of growing importance amid population growth and climate change.
Ofwat judges the performance of water companies in England and Wales each year against the ‘stretching’ targets they set in 2019 for a five-year period until 2025.
Most water companies failed to confront key targets on reducing pollution, leakages and supply interruptions over the last financial year.