UK water firms ordered to return 157.6 mln pounds to customers for poor performance

LONDON, Oct. 8 (Xinhua) — Water firms in England and Wales have been ordered by Britain’s regulator, Ofwat, to return 157.6 million British pounds (206 million U.S. dollars) to customers due to poor performance.
Ofwat released its annual Water Company Performance Report on Tuesday, describing the results as “disappointing.”
Despite a sector-wide commitment to reduce pollution incidents by 30 percent from 2020 to 2025, only a 2 percent reduction has been achieved so far. In light of this, customers will see reductions in their bills to reflect performance penalties in the 2025-26 period, with the exact amounts to be finalized in December.
“This year’s performance report is stark evidence that money alone will not bring the sustained improvements that customers rightly expect,” said Ofwat CEO David Black.
The report revealed an increase in pollution incidents for nine of the 11 suppliers in 2023, with only one company meeting the performance commitment level. Thames Water, the largest water company in the country, will face the heaviest penalty of 56.8 million pounds.
Additionally, the sector has fallen short on other key targets. Water companies have only achieved a 6 percent reduction in leakage, far from the 16 percent goal set for 2025. On internal sewer flooding, a 41 percent reduction was promised over five years, but over the past four years, the sector has managed just a 10 percent reduction.
Customer satisfaction has also hit its lowest point since 2020. For the second consecutive year, no water company achieved Ofwat’s top “leading” rating, with three companies categorized as “lagging behind.”
Black criticized the water suppliers’ tendency to blame external factors for poor performance. “Companies must implement actions now to improve performance, be more dynamic, agile and on the front foot of issues,” he said. ■