Regulators have directed water companies to refund customers a sum of £114m in the coming year, owing to their underperformance. Thames Water faced the most severe impact, receiving a penalty exceeding £100m for the recent financial year from Ofwat.
The authority has mandated companies to provide rebates on customer bills following their failure to meet the established targets. According to Ofwat’s inaugural annual Water Company Performance Report, none of the UK’s water utility companies achieved a rank in the topmost “leading” category.
Ten firms fall under the “average” category, while seven, including Anglian Water, Dŵr Cymru, Southern Water, Thames Water, Yorkshire Water, Bristol Water, and South East Water, are classified in the lowest “lagging” group.
David Black, the Chief Executive of Ofwat, remarked:
The objectives assigned to companies were intended to be challenging – to foster enhancements for both customers and the environment.
However, our recent report indicates a shortfall, resulting in £114m being reverted to customers through reduced bills. While this might be beneficial for billpayers, it represents disappointing news for those aspiring to witness improvement in the sector.
