Almost £150 million is set to be taken off customers’ water bills after 11 water companies have been hit by financial penalties.
Water regulator Ofwat said that the utility companies have been fined for missing targets in areas such as water supply interruptions, pollution incidents and internal sewer flooding.
Thames Water and Southern Water performed the worst and will have to return almost £80 million to customers, Ofwat said.
Customers should see their bills reduced in 2023 to 2024.
David Black, Ofwat’s chief executive, said: “When it comes to delivering for their customers, too many water companies are falling short, and we are requiring them to return around £150 million to their customers.
“We expect companies to improve their performance every year; where they fail to do so, we will hold them to account.
“The poorest performers, Southern Water and Thames Water, will have to return almost £80m to their customers.
“All water companies need to earn back the trust of customers and the public and we will continue to challenge the sector to improve.”