Ofwat Drafts Water Bill Cuts After Providers Miss Targets
Yorkshire Water and Thames Water face the largest proposed customer returns, while some providers could receive rewards for meeting targets.
Key takeaways
- Ofwat expects £107 million to be returned through lower bills in 2027-28.
- Yorkshire Water’s proposed return is £75.1 million, and Thames Water’s is £45.8 million.
- Severn Trent and Northumbrian Water are in line for reward payments.
- Ofwat plans to make a final decision by 15 December.
Ofwat expects £107 million to be returned to water customers through lower bills in 2027-28, after providers missed performance targets. The regulator’s draft figures include proposed returns from Yorkshire Water and Thames Water.
Yorkshire Water would return £75.1 million and Thames Water £45.8 million, Ofwat said. The regulator estimates average bills could fall by £27 for Yorkshire customers and £7 for Thames customers.
Other providers facing proposed returns include Dŵr Cymru, South West Water and United Utilities. Meanwhile, Severn Trent is in line for a £41.8 million reward payment and Northumbrian Water for £35.9 million, which could raise customer bills.
The figures are still at the draft stage, and bill changes will vary by company and customer type. Ofwat plans to make its final decision by 15 December, with the changes due to take effect from 1 April 2027.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
