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Evening Standard
Evening Standard
World
Matt Watts

Thames Water told to give back £74million to customers after poor performance

Water companies are being forced to return millions of pounds to customers after falling short of performance standards, regulator Ofwat has said.

Thames Water will have to return nearly £74 million across its 15 million customers, the highest of all the companies reviewed by the watchdog.

Anglian Water customers will see more than £27 million taken off their bills and Dwr Cymru about £24 million.

Meanwhile, some companies will be able to charge customers more after improving their performances, according to Ofwat.

Severn Trent Water will be allowed to charge nearly £89 million across the 4.6 million customers it serves.

But the majority of companies are having to return money to customers, as Ofwat confirms the financial penalties and payments for all water companies for 2022-23.

The fines for underperforming suppliers will be passed onto customers through lower bills over 2024 and 2025.

Most companies failed to meet key targets on reducing pollution, leakages and supply interruptions, Ofwat found.

Thames Water has come in for strong criticism over its performance following a series of sewage discharges and leaks.

The firm leaks more water than any other water company in UK.

It has revealed plans to hike Londoners’ bills by £14.55 a month to fix leaks and cut sewage discharges.

The struggling firm faced crisis talks earlier this year over its massive £14 billion debt pile, but it managed to secure an emergency funding package from shareholders.

The watchdog last month said Britain's biggest water supplier has "significant issues to address" over its financial strength.

Overall Ofwat said 12 firms will have to return around £193 million to customers, partially offset by five firms charging about £123 million more, resulting in a net total of £70 million being paid out.

The regulator had said in September that firms would return a net total of £114 million, but that amount was provisional until the review process was completed.

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