Water firms forced to pay back customers for poor performance

Water companies have been ordered to pay £114m back to customers after failing to meet key targets.

Ofwat, the industry regulator, said that firms are "falling short" on performance measures around leakages, supply and reducing pollution.

It said that following a review, millions of pounds will be returned to households by cutting bills.

Ofwat said in its assessment that not one company reached the highest measure of performance.

Dwr Cymru, Southern, Thames, Anglian, Bristol, South East and Yorkshire Water fell into the lowest category of "lagging" and the remaining 10 were rated "average". None were considered "leading".

The regulator judges water companies against "stretching" targets set in 2019 for a five-year period.

If they fail to meet the measures set, Ofwat restricts the cash they can take from customers.

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

He added: "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."