Midland water customers set for bill cuts but amount will be hardly worth having (original) (raw)
South Staffs Water is among a number of water companies ordered to pay customers back with cheaper bills next year, it has been revealed. The company will have to pay back £700,000 for missing key pollution and leak targets - but residents will only see a few pounds of the money once it's split.
Collectively, water firms across England and Wales have been told to return £158million by regulator Ofwat, which assesses the performance of 17 of the largest water and wastewater companies each year. Poor performance has cost the sector £157.6m, with firms told to reduce residents' bills to reflect the penalties.
But most customers will find a reduction of less than £10 as the worst performing companies collectively return millions of pounds. Residents' bills will be "reduced to reflect these performance penalties" in 2025- 2026, though many will only see bills reduced by a few pounds.
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Water companies were set stretching targets for 2020 to 2025 to deliver better outcomes for customers and the environment. Where they fall short on these, Ofwat imposes performance penalties, resulting in customers being charged less in the following billing year.
This week it branded the results, which include sewer flooding, supply interruptions and water leaks, "disappointing" as the annual Water Company Performance Report was published. For a second year running, no company achieved the 'leading' status and Ofwat said companies were falling further behind on key targets for pollution and internal sewer flooding.
Ofwat CEO David Black 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.
How much will each company have to refund customers in millions?
| Company | Bill refunds (£m) |
|---|---|
| Thames Water | 56.8 |
| Anglian Water | 38.1 |
| Yorkshire Water | 36.0 |
| Southern Water | 31.9 |
| Welsh Water | 24.1 |
| South West Water | 17.4 |
| South East Water | 8.0 |
| Wessex Water | 5.3 |
| Affinity Water | 5.2 |
| Bristol Water | 1.9 |
| Portsmouth Water | 1.1 |
| South Staffs Water | 0.7 |
| Hafren Dyfrdwy | 0.2 |
South Staffs Water said it recognised its "part to play" in delivering services customers "expect and pay for." A spokesperson said: "We welcome that Ofwat has recognised our efforts to improve our performance during the current five-year planning period, especially in measures we know are important to customers such as reducing leakage by 15 per cent and resolving supply interruptions within 5 minutes.
"We are committed to delivering high quality and reliable water supplies while maintaining our assets, improving our service and protecting the environment. We currently have an ambitious plan in place to ensure we do this.
"We are also continuing to work with our customers to help them use water wisely." Strategy and regulation director Caroline Cooper for South Staffs Water said: “We are really pleased Ofwat has recognised our recent efforts to reduce water use in our Cambridge region with our ‘Can for the Cam’ campaign, as we look to build on the success of this to support our water resource position.
"We are also continuing to improve our communication with customers to make them aware of the support packages we offer. Water affordability is at the heart of our strategy for the next five years, and we are offering more support than ever to those customers who need extra help with their water bills. As part of this, we provided financial support to 61,752 customers during 2023/24, significantly beating our target of 38,000.
"But, like all water companies, we are facing a number of significant challenges because of climate change and population growth. We look forward to working further with Ofwat when we see their final determination on our future plans later this year."
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