WATER companies have been ordered to return £158million to customers after failing to meet pollution targets.
The industry regulator, Ofwat, announced the rebate following its annual review of the performance of water and wastewater companies in England and Wales.
Each year, Ofwat evaluates the performance of the 17 largest water and wastewater companies in England and Wales against key targets, including sewer flooding, supply interruptions, and water leaks.
For the second consecutive year, no company attained the highest rating, although four companies demonstrated improvement compared to the previous year.
As a result, millions of customers at 13 water companies could see their bills slashed next year as the watchdog issues penalties.
Customers at the following water firms will benefit:
The regulator said that the exact amount that will be returned to customers will be finalised in December 2024.
David Black, chief executive of Ofwat, 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.
“Companies must implement actions now to improve performance, be more dynamic, agile and on the front foot of issues.
“However, we are beginning to see that some companies are beginning to change their culture and adopt a more innovative and forward-thinking approach to tackling pollution.
Only four water companies have not faced a penalty from the regulator, meaning customers at the following firms won’t recieve a rebate next year:
Water companies were set stretching targets for 2020-25 to deliver better outcomes, for both customers and the environment.
Where they fall short on these, the regulator imposes performance penalties which results in customers being charged less than they otherwise would be the following billing year.
Performance penalties have totalled more than £430million since 2020.
IT'S always worth checking if you qualify for a discount or extra support to help pay your water bill.
Over two million households who qualify to be on discounted social water tariffs aren’t claiming the savings provided, according to the Consumer Council for Water (CCW).
Only 1.3million households are currently issued with a social water tariff – up 19% from the previous year.
And the average household qualifying for the discounted water rates can slash their bills by £160 a year.
Every water company has a social tariff scheme which can help reduce your bills if you’re on a low income and the CCW is calling on customers to take advantage before bills rise in April.
Who’s eligible for help and the level of support offered varies depending on your water company.
Most suppliers also have a pot of money to dish out to thousands of customers who are under pressure from rising costs – and you don’t have to pay it back.
These grants can be worth hundreds of pounds offering a vital lifeline when faced with daunting water bills.
The exact amount you can get depends on where you live and your supplier, as well as your individual circumstances.
Many billpayers across the country could also get help paying off water debts through a little-known scheme and even get the balance written off.
Companies match the payments eligible customers make against the debt on their account to help clear it sooner.
If you’re on a water meter but find it hard to save water as you have a large family or water-dependent medical condition, you may be able to cap your bills through the WaterSure scheme.
Bills are capped at the average amount for your supplier, so the amount you could save will vary.
The Consumer Council for Water estimates that bills are reduced by £307 on average through the scheme.
The newly announced penalties are separate to an ongoing Ofwat investigation into all 11 of England and Wales’s water firms, which ordered three companies to pay £168 million in fines in August, in the first results of the probe.
It comes against a backdrop of mounting public and political fury at the privatised water sector which is under fire over sewage spills, proposed bill rises and executive bonuses
Years of under-investment by the privately-run firms combined with ageing water infrastructure, a growing population and more extreme weather caused by climate change have seen the quality of England’s rivers, lakes and oceans plummet in recent years.
Some water utilities are also creaking under high levels of debt or face criticism over dividends to shareholders and executive bonuses.
Labour has said it wants the sector to reduce spills and has even proposed sweeping new laws which could see bosses face up to two years in jail if they obstruct regulators.
On Monday, a report from the Environment Agency found that almost a fifth of water supplies are being lost through leaks before they reach customers’ taps.
Ofwat said customer bills will be reduced to reflect the penalties, but that the total rebates will be calculated in December.
