Ofwat’s latest Water Company Performance Report covering the 16 largest water and wastewater companies in England and Wales shows that “companies are making progress in some areas, but in other areas performance is unacceptable”.

Credit: Tom Fisk

Key points

• Poor performance costs water sector £157.6m this year as companies fall further behind on some key Ofwat targets
• Customers’ bills will be reduced to reflect these performance penalties in 2025-26, following end of period calculation
• Ofwat CEO challenges companies to match record proposed investment with changes in company culture and leadership essential for lasting change
• Despite water companies committing to reduce pollution incidents by 30 per cent, there has only been a 2 per cent reduction
• Fewer companies categorised as ‘lagging behind’ but performance inconsistent across the sector

According to the economic regulator, the “disappointing results” demonstrate that record investment alone in the next five-year period will not deliver the sustained improvements to services and the environment needed to rebuild public trust.

Without a more innovative and proactive approach to solving the problems facing the sector, water companies will not fulfil the potential offered by the next price control to deliver clean rivers and seas and improvements for customers.

Companies are falling further behind on key targets for pollution and internal sewer flooding, with no company achieving ‘leading’ status for the second year running.

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