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:
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- Thames Water
- Anglian Water
- Yorkshire Water
- Southern Water
- Welsh Water
- South West Water
- South East Water
- Wessex Water
- Affinity Water
- Bristol Water
- Portsmouth Water
- South Staffs Water
- Hafren Dyfrdwy
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:
- SES Water
- Northumbrian Water
- Severn Trent Water
- United Utilities
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.