UK regulator proposes to cut water bills by $319 million
Ofwat said the draft plan would return £107 million to bills in 2027-28, with Yorkshire Water and Thames Water facing the biggest penalties.
- Ofwat announced plans today to cut water bills by £240 million by 2029-30, penalizing suppliers for failing environmental and customer service targets. The regulator said penalties would be returned to households and businesses through their bills.
- The regulator designed these outcome delivery incentive payments to hold water companies accountable, with penalties for falling short of targets and rewards for outperforming expectations. This framework aims to ensure suppliers meet agreed environmental and service standards.
- Yorkshire Water faces £75 million in reductions while Thames Water sees £46 million returned through bills starting April 2027. Conversely, Severn Trent and Northumbrian Water are set to receive outperformance payments for meeting or exceeding targets.
- Households will see £107 million returned through bills in 2027-28, though these cuts are likely offset by separate plans allowing water companies to increase tariffs by an extra £3.4 billion on top of a 36% rise already agreed to 2030.
- Ofwat will finalize its decision on outcome delivery incentive payments by December 15, with any changes taking effect on bills from April 1 next year. The regulator stressed impacts will vary by company and customer type.
31 Articles
31 Articles
Water companies face £240m in penalties for poor performance
Water companies face £240 million of proposed penalties after missing performance targets, with Thames Water and Yorkshire Water among those facing the largest reductions. Ofwat’s draft Outcome Delivery Incentive decisions for 2025/26 would cut the amount companies can recover from customers after failures on measures including leakage, customer service and other agreed performance targets. Around £107 million of the overall adjustment is expect…
Millions to be handed £240m water bill cut from firms due to 'poor performance'
Ofwat is proposing to hit a raft of firms across the sector with penalties for not meeting targets on environmental and customer service, which will be returned to households and businesses through their bills.
Evening Standard
Water firms set to return £240m to customers by 2030 for poor performance
The total net bill reduction under the draft plans is £240 million by 2029-30, with £107 million being returned through customer bills in 2027-28.
UK regulator proposes to cut water bills by $319 million
UK water regulator Ofwat on Wednesday proposed to cut customers' water bills by £240 million ($318.5 million), with Thames Water and Yorkshire Water set to incur the largest penalties for under-performing on targets.
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