WATER industry watchdog Ofwat is set to fine Southern Water for failing to provide correct information about customer service standards.

The water company, which supplies homes in Whitchurch, Overton and Kingsclere, reported the wrong figures to Ofwat in October 2005 about how many customer complaints they had failed to respond to within guideline times.

Under the company's Guaranteed Standards Scheme, customers can expect a full response to a written complaint within 10 working days, otherwise they will receive a £25 payment.

Philip Fletcher, chairman of Ofwat's Water Services Regulation Authority, said: "A financial penalty will send a clear message that each water company must meet its legal obligations to its customers.

"Ofwat will determine the final scale of the financial penalty when the full extent of the customer service failures and the company's response is known."

After discovering the error, Southern Water reported it to Ofwat and brought in a team of independent experts to examine how it happened.

The company is also trying to ensure that everyone who is entitled to the £25 payment has received it.

Jo Osborn, press officer for Southern Water, said: "We fully understand the procedural steps Ofwat has taken with regards to the penalty.

"We are continuing to take the matter extremely seriously and remain determined to get to the bottom of this situation and remedy it."

Richard Sturt, chairman of the customer watchdog Consumer Council for Water Southern, said the organisation had asked Ofwat to ensure this is an isolated incident.

He added: "Serious failures in customer service have occurred and it is only right that action should be considered to penalise the company for this."

He said his organisation was confident the company is making improvements.

First published: Tuesday, May 2, 2006