The Water Services Regulation Authority (Ofwat) has today (Tuesday 8 October) published its annual Water Company Performance Reports, which it said showed “disappointing” results.
Ofwat added water companies had “fallen further behind” on key targets for pollution and internal sewer flooding, with a number deemed to be “lagging behind” in terms of standards.
Stark evidence
Poor performance costs were projected to have cost the water sector £157.6m this year.
In light of the report, the regulator said customers’ bills, for both households and businesses, would be reduced to reflect these “performance penalties” in 2025-26, following end of period calculation.
Ofwat CEO David Black said: “This year’s performance report is stark evidence money alone will not bring the sustained improvements that customers rightly expect.
“It is clear 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.
Improve performance
“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.”
This comes as more than one in 10 British pubs were deemed at “imminent risk” of closure due to a high costs, according to data released this week by accountancy firm Price Bailey.
In addition, the figures showed of the 37,961 pubs and bars in the UK, 7,445 (20%) were technically insolvent.
Moreover, some 450 pubs were found to have closed their doors for good during the first six months of 2024 alone as hospitality firms continue to battle rising bills across the board.
