Water firms have been ordered to return almost £158 million to customers due to poor performances on issues such as pollution.
Regulator Ofwat said today that the £157.6 million rebate would be reflected in lower bills for customers and businesses across England and Wales between 2025 and 2026.
This followed an annual review of the sector by the regulator, which noted there had been an increase in pollution incidents in 2023 at nine of the sector’s 13 companies.
Ofwat added that there had been a 2% fall in such incidents since 2020, despite targets for a 30% reduction over the period covering until 2025.
“Money alone will not bring the sustained improvements that customers rightly expect,” Ofwat chief executive David Black commented.
“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.”
Anglian Water, Dŵr Cymru Welsh Water and Southern Water were categorised as ‘lagging behind’ the wider industry in Ofwat’s report.
Thames Water, South East Water, South West Water and Yorkshire Water were classed as ‘average’ in the meantime, having been moved up from the ‘lagging behind’ category.
It comes as customers brace for an anticipated average 21% increase in bills over the next five years, reflecting a £94 rise for households, with the rebates set to constitute just a few pounds.