According to Ofwat, the funds would be deducted from residential and business bills in 2025–2026. The entire amount of the rebates will be determined in December.
In a similar move last year, the water regulator ordered companies to refund £114 million.
Ofwat reported that “disappointing results” were found in its annual report on the performance of water companies, and that the industry’s problems could not be solved by financial means alone.
The regulator also issued a warning, stating that companies were “falling further behind on key targets” and that in 2023, there will be an increase in “pollution incidents” at nine out of eleven suppliers.
This occurs at a time when water prices in Wales and England are expected to increase by 21% on average over the next five years.
“This year’s performance report is stark evidence that money alone will not bring the sustained improvements that customers rightly expect,” stated David Black, chief executive of Ofwat.
It is obvious that businesses must adapt, and the first step in doing so must be to address issues with leadership and culture. Too often we hear that weather, third parties, or external causes are blamed for deficiencies.”
“Companies must take immediate action to improve performance, be more dynamic, agile, and aware of issues,” he continued. Not to mention, without waiting for it.
