Customers from eleven water firms will enjoy rebates on their energy bills, after the companies were slapped with financial penalties for missing targets in supply interruptions, pollution incidents and internal sewer flooding.
Water regulator Ofwat has revealed £150m will be collectively taken off customer bills in 2023/24, in the next financial year.
Not all water companies have significantly missed their targets, with better performers such as Severn Trent Water have exceeded their targets in areas like biodiversity and are able to recover more money from customers.
Meanwhile, poorer performing companies such as Thames Water and Southern Water will face a financial hit, which will collectively have to pass on nearly £80m to customers.
| Water supplier | Total rebate (£) |
| Thames Water | 51.2 |
| Southern Water | 28.3 |
| Northumbrian Water | 20.3 |
| Yorkshire Water | 15.2 |
| South West Water | 13.3 |
Ofwat chief executive David Black 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.”
These draft decisions are now out for consultation and can be viewed on the Ofwat website.
The consultation closes later this month, on 21 October 2022.
Ofwat has placed enforcement orders on six water companies this year amid concerns over sewage dumping.
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