Water companies have been ordered to return nearly £160m to customers next year after missing several key targets. Industry regulator Ofwat announced the figure through its annual review of the companies.
The multi-million sum will be returned to customers via a rebate on bills, meaning many will see them lowered next year. The exact amount customers can expect back will depend on their provider, with some fined more than others.
One of the key targets missed was a substantial reduction in pollution incidents. Despite water companies committing to reduce pollution incidents by 30 per cent, they only fell by two per cent.
Leaks were also of particular concern, reduced by only six per cent rather than the target of 16 per cent. Customer satisfaction was also recorded as being at its lowest since 2020 – when Ofwat began measuring the metric.
Ofwat chief executive David Black said: “This year’s performance report is stark evidence that money alone will not bring the sustained improvements that customers rightly expect.
“It is clear that companies need to change and that has to start with addressing issues of culture and leadership. Too often we hear that weather, third parties or external factors are blamed for shortcomings.”
Thames Water receives the heaviest fine at £56.8m. The embattled water company has struggled for cash in recent years after many spills and leaks, with bosses recently proposing a major bill spike.
However, Ofwat’s latest assessment moves it from ‘lagging behind’ to average – the highest level any water company attains. The three still lagging behind are Anglian Water, Dŵr Cymru (Welsh Water) and Southern Water.
Customers will not need to act to see their refunds, as bills will be discounted over the next year. However, the amount saved will only be a few pounds when spread between all customers, and will be greatly offset by the coming increase in water bills.