Will you get money back as water firms ordered to return £158m to customers?
Not one water company achieved Ofwat's top category of “leading”, as ITV News' Business Editor Joel Hills report
Water firms have been ordered to pay £157.6 million back to customers after missing key targets on pollution, leaks, supply interruptions and falling customer satisfaction.
Ofwat, the water regulator, has judged each of the water companies and found that none met the criteria for their top category of "leading".
Anglian Water, Welsh Water and Southern Water fell into its lowest category of "lagging", while the remaining 10 were awarded an "average" rating.
Bosses at the regulator judge the performance of water firms each year against "stretching targets" they set in 2019 for a five-year period until 2025.
Failure to meet those targets results in Ofwat restricting the amount of money they can take from customers.
Customers won't need to chase the money owed by water firms, their bills will instead be amended to reflect the decision made by the water regulator.
Ofwat has said the figures are provisional until it completes a review process in December - the exact amount that will be returned to customers will also be finalised then.
Which water firms have to pay back the most to their customers?
Thames Water - £56.8 million
Anglian Water - £38.1 million
Yorkshire Water - £36 million
Southern Water - £31.9 million
Welsh Water - £24.1 million
South West Water - £17.4 million
South East Water - £8 million
Wessex Water - £5.3 million
Affinity Water - £5.2 million
Bristol Water - £1.9 million
Portsmouth Water - £1.1 million
South Staffs Water - £700,000
Hafren Dyfrfwy - £200,000
While no firm ranked above "average", SES Water, Northumbria Water, Severn Trent Water and United Utilities outperformed payments .
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. And not wait until the government or regulators tell them to act.
“As we look towards the next price control, the challenge for water companies is to match the investment with the changes in company culture and performance that are essential to deliver lasting change.”
Thames Water, which has been beset with financial woes, and has continued to sink further and further into hundreds of millions worth of debt had some rare good news in that it was lifted from "lagging" to "average" after meeting performance targets on leaks and supply.
Penalties are separate to an ongoing Ofwat investigation into all 11 of England and Wales’s water firms, which ordered three companies to pay £168 million in fines in August, in the first results of the probe.
It comes against a backdrop of mounting public and political fury at the privatised water sector which is under fire over sewage spills, proposed bill rises and executive bonuses.
Years of under-investment by the privately-run firms combined with ageing water infrastructure, a growing population and more extreme weather caused by climate change have seen the quality of England’s rivers, lakes and oceans plummet in recent years.
Subscribe free to our weekly newsletter for exclusive and original coverage from ITV News. Direct to your inbox every Friday morning.
Some water utilities are also creaking under high levels of debt or face criticism over dividends to shareholders and executive bonuses.
Labour has said it wants the sector to reduce spills and has even proposed sweeping new laws which could see bosses face up to two years in jail if they obstruct regulators.
On Monday, a report from the Environment Agency found that almost a fifth of water supplies are being lost through leaks before they reach customers’ taps.
Ofwat said customer bills will be reduced to reflect the penalties, but that the total rebates will be calculated in December.
Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know...