A raft of water companies have been ordered to return £150m to customers because they failed to meet their targets around pollution, biodiversity, sewer flooding and continuity of supply.

Ofwat, the water sector regulator for England and Wales, today announced financial penalties for 11 companies which have failed to meet shared and individual targets set out at the sector’s last price review, in 2019.

As well as setting the price of water, Ofwat is also responsible for distributing financial incentives and penalties that are designed to encourage water firms to improve their performance across a number of environmental and operational metrics.

Southern Water and Thames Water have been slapped with the heftiest fines of £28.3m and £51m, respectively, after being found to have the worst performance against the targets established three years ago. The companies will have to redistribute their funds to customers across the 2023-2024 tax year, Ofwat said.

Keep reading this article on Business Green - Incisive Business Media (IP).

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