Water regulator Ofwat has announced that 11 water companies are to be fined after they missed targets.
Thames Water and Southern Water are among the water companies who’ll be hit with financial penalties which total around £150m and will have to return the money to customers in the form of lower bills in the 2023-24 financial year.
Thames and Southern Water are being fined £51m and £28.3m respectively due to them “missing targets on water treatment works compliance, pollution incidents and internal sewer flooding across 2021/22 and will have to reduce customer bills accordingly,” according to Ofwat.
Other recipients of large penalties included Northumbrian Water and Yorkshire Water, which will cut bills by £20m and £15m.
Some companies have fared better than others, with Severn Trent exceeding their targets in areas like biodiversity which means they’re able to raise customer bills.
David Black, Ofwat CEO, said: “When it comes to delivering for their customers, too many water companies are falling short, and we are requiring them to return around £150m to their customers.
“We expect companies to improve their performance every year; where they fail to do so, we will hold them to account.
“The poorest performers, Southern Water and Thames Water, will have to return almost £80m to their customers.
“All water companies need to earn back the trust of customers and the public and we will continue to challenge the sector to improve.”
Companies who have performed the best will now be permitted to generate extra from customer bills, with Severn Trent Water being allowed to generate an extra £62.9 million and United Utilities able to bring in £24.1 million extra.
Which water companies are being fined?
- Affinity Water - £0.8m
- Anglian Water - £8.5m
- Dwr Cymru - £8m
- Hafren Dyfrdwy - £0.4m
- Northumbrian Water - £20.3m
- SES Water - £0.3m
- South East Water - £3.2m
- South West Water - £13.3m
- Southern Water - £28.3m
- Thames Water - £51m
- Yorkshire Water - £15.2
Which firms can charge more?
- Bristol Water - £0.6m
- Portsmouth Water - £0.8m
- Severn Trent Water - £62.9
- South Staffs Water £3.3m
- United Utilities - £24.1m
- Wessex Water - £4.4m