UK borrowing costs climb ahead of the budget; Water companies to pay £157.6m penalty for poor performance – business live

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Here are the key points from Ofwat’s annual report on the English and Welsh water sector:

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

Despite the sector committing to reduce pollution incidents by 30% in the 2020-25 period, and achieving a reduction of 15% from 2019 to 2022, the increase in pollution incidents in 2023 means there has now only been a 2% reduction to date.

On leakage, while progress has been made, companies have only achieved a reduction of 6% on an annual basis to date, against a target of 16% by 2025.

On leakage, while progress has been made, companies have only achieved a reduction of 6% on an annual basis to date,1 against a target of 16% by 2025. The sector committed to reduce internal sewer flooding incidents by 41%, but four years in it has achieved a 10% reduction.

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