WATER COMPANIES should pay more compensation to victims of sewer flooding, according to the government's spending watchdog.
The proposal appears in a National Audit Office's (NAO) report on the sewer network published last week.
The report criticises the current arrangements for compensating flood victims as being limited and out of proportion to the damage caused.
Under the current system householders affected by sewer flooding are refunded their annual sewerage charges. The cost of damage has to be recouped from insurance companies but this can cause premiums to rise.
Some victims of frequent flooding struggle to get insurance and others do not claim for flood damage for fear of losing cover.
The NAO report also urges the government to consult on who should pay for the extra sewer capacity needed in areas targeted for property development.
'We want to raise awareness surrounding these issues to encourage government and industry to find a fair solution, ' said an NAO spokesman.
The report also highlights the need for water companies to develop a common approach to asset management.
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