The industry regulator Ofwat has ordered water companies to pay £114m back to customers after failing to satisfy key targets.

The rebate, set out today (Sep 26), will come off customers' bills for next year, with Ofwat saying firms are "falling short" on leakage, supply and pollution performance measures.

Water companies were set "stretching" targets for 2020 to 2025 to deliver better outcomes for both customers and the environment. If firms fail to meet these standards, Ofwat reduces the amount of money they can collect from customers.

Throughout the assessment, no companies reached the highest performance measure of "leading".

Ten companies are in the "average" category, and seven have been categorised as "lagging" (Anglian Water, Dŵr Cymru, Southern Water, Thames Water, Yorkshire Water, Bristol Water and South East Water).

Ofwat is still investigating all eleven water and wastewater companies, with live enforcement cases ongoing for six companies regarding sewage discharges.

David Black, Ofwat's chief executive, said while the reductions "may be welcome to bill payers", it is "disappointing news for all who want to see the sector do better". He continued:

"It is not going to be easy for companies to regain public trust, but they have to start with better service for customers and the environment."

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