The water regulator has recognized six water firms which it says are “falling short” in “too many areas” together with sewage discharge.
Ofwat mentioned it was “deeply concerned” that Northumbrian Water, Southern Water, South West Water, Thames Water, Welsh Water and Yorkshire Water have been lagging behind expectations.
Its annual evaluation of firm operational efficiency and monetary resilience singled out trade huge failures in areas together with air pollution which, Ofwat mentioned, had elevated.
The report was launched towards the backdrop of a backlash towards water companies over sewage overflows which compelled seashores to be closed in some cases earlier this 12 months.
The six companies known as out by the watchdog have to clarify their efficiency and current a transparent motion plan.
Most had “again failed to clearly explain the link between their dividend decisions and payments with performance delivery for customers”, Ofwat mentioned.
It added: “In particular, both Northumbrian Water and Portsmouth Water fell short of our expectations when considered in the context of the level of dividend they paid, which was significantly higher than our base expectations, and their relative financial resilience.”
The report mentioned there was encouraging progress on leakage, which is now at its lowest degree since privatisation.
However, the variety of critical air pollution incidents elevated, with Ofwat revealing earlier this week that water companies are failing to take a position as a lot as they promised to repair their networks, together with enhancing sewage remedy and lowering spills into the setting.
Between 2020 and 2022, 14 firms underspent their price range on enhancing their water community and eight firms underspent their price range for enhancing their wastewater community.
Affinity Water and Northumbrian Water spent simply 47% and 48% of their water enhancement allowance respectively, and Yorkshire Water and South West Water spent simply 20% and 39% of their wastewater enhancement allowance respectively.
Ofwat units allowances for the way a lot firms can cost households to then make investments over the value management interval, to take care of and enhance its water community.
Last month, marketing campaign group Surfers Against Sewage (SAS) claimed that water firms had launched uncooked sewage into UK rivers and seas virtually 150 occasions throughout dry climate – regardless of being instructed to take action solely when there’s heavy rainfall.
Ofwat chief govt David Black mentioned: “In too many areas, water and wastewater companies are falling short when it comes to looking after customers, the environment and their own financial resilience. We are clear: these companies need to address this unacceptable performance as a matter of urgency.
“For some firms, poor efficiency has grow to be the norm. This can not go on. We are requiring the worst performers, together with Thames Water and Southern Water, to return round £120 million to clients.
“Separate from today’s reports, we are taking enforcement action on wastewater treatment works compliance, well as consulting on licence changes that will help us drive through the transformation needed across the water industry.”
Industry physique Water UK chief govt, Christine McGourty, mentioned: “There are areas of good performance right across the sector, but this report clearly shows there’s more to do for water and wastewater companies to meet the stretching targets of the regulators, as well as the high expectations of the public.”
Source: information.sky.com”