Water firms ordered to pay £157.6m for missing performance targets

Ofwat has ordered 14 water companies to pay £157.6 million penalty as they missed key performance targets.

No water companies received the top category, “leading” and Welsh Water, Southern Water and Anglian Water fell to the lowest category of “lagging.”

The remaining 10 water companies were rated as “average” by Ofwat and the regulator judges their performance every year against “stretching” the targets set in 2019.

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.”

Steve Reed, Secretary of State for the Environment, Food and Rural Affairs, said: “Our waterways should be a source of national pride, but years of pollution and underinvestment have left them in a perilous state.

“The public deserves better. That’s why we are placing water companies under special measures through the Water Bill, which will strengthen regulation including new powers to ban the payment of bonuses for polluting water bosses and bring criminal charges against persistent law breakers.

“We will be carrying out a full review of the water sector to shape further legislation that will fundamentally transform how our entire water system works and clean up our rivers, lakes and seas for good.”