Households across London are set to see millions taken off their water bills after the local supplier was penalised by the Ofwat.
Thames Water performed the worst and will have to return £51 million to customers.
Households can't change their water supplier if they perform badly, so our regulations are in place to incentivise improvements. Part of how we do this is by forcing companies to reduce bills when they perform poorly.
Read more about their performance https://t.co/MKhqdPM7xj pic.twitter.com/tmhb1Qqb6m
— Ofwat (@Ofwat) October 3, 2022
In a statement, Ofwat’s Chief Executive, David Black 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 £80 million 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.”
Other companies across England and Wales that exceeded their targets will be allowed to raise prices, meaning bills could go up elsewhere.
Severn Trent Water in Coventry performed well and will be allowed to increase customer bills by as much as £63 million over the next few years.
All water companies will be allowed to increase their prices in line with inflation. This is based on the consumer prices index and occupiers’ housing costs which hit 8.6%.
This means that inflation-related price rises will most likely be offset by these fines.