Wessex Water say 'more needs to be done' to improve services

They've responded to Ofwat's decision to order repayments by companies

Author: Sian RochePublished 9th Oct 2024

Water companies will have to pay a £157.6 million penalty between them, after missing key targets on reducing pollution, leaks and supply interruptions while customer satisfaction continues to fall.

The findings by Ofwat include £5.3 million of repayments by Wiltshire and Dorset supplier Wessex Water.

The firm has responded to the report, telling us it's ready to do more to clean up water supplies.

In a statement, a Wessex Water spokesperson said:

While we’ve delivered improvements under almost every measure in this report, clearly more needs to be done and we’ve listened to our customers’ concerns in setting out plans to invest £3.65 billion in service improvements from 2025. We now need Ofwat to approve these plans.”

David Black, chief executive of Ofwat, said:

"This year's performance report is stark evidence that money alone will not bring the sustained improvements that customers rightly expect.

"It is clear that 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.

"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.

"As we look towards the next price control, the challenge for water companies is to match the investment with the changes in company culture and performance that are essential to deliver lasting change."

It comes against a backdrop of mounting public and political fury at the privatised water sector which is under fire over sewage spills, proposed bill rises and executive bonuses.

Years of under-investment by the privately-run firms combined with ageing water infrastructure, a growing population and more extreme weather caused by climate change have seen the quality of England's rivers, lakes and oceans plummet in recent years.

Some water utilities are also creaking under high levels of debt or face criticism over dividends to shareholders and executive bonuses.

Labour has said it wants the sector to reduce spills and has even proposed sweeping new laws which could see bosses face up to two years in jail if they obstruct regulators.

On Monday, a report from the Environment Agency found that almost a fifth of water supplies are being lost through leaks before they reach customers' taps.

Ofwat said customer bills will be reduced to reflect the penalties, but that the total rebates will be calculated in December.

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