Water companies ordered to pay £158million back to customers by lowering bills

Water companies have been ordered to repay £157.6 million to customers through lower bills after missing key targets.

The water regulator Ofwat has slapped the penalty onto 17 water firms after all missed out on targets such as reducing pollution, leaks, and supply interruptions. According to the water regulator's annual review, for the second year in a row, no company achieved the top rating, although four companies did show an improvement from last year.

For the worst performing companies, failure to meet the targets means they will now have to collectively return £157.6m to customers on their bills for 2025-2026. However, Ofwat has already proposed a increase of around £94 per household which means the cuts could only amount to a few pounds on household bills.

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