MILLIONS of households are set to get a discount on their water bill next year.
It comes after the water regulator Ofwat confirmed that the majority of companies will have to return millions of pounds to bill payers.
Cash is being handed back to customers after the companies missed key performance targets.
Most companies failed on reducing pollution, leakages and supply interruptions, Ofwat found.
Thames Water will return a whopping £74million to its 15million customers – the highest of all the companies reviewed by the watchdog.
The struggling firm faced crisis talks earlier this year over its massive £14billion debt pile, but it managed to secure an emergency funding package from shareholders.
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The watchdog last month said Britain’s biggest water supplier has “significant issues to address” over its financial strength.
Anglian Water customers will see more than £27million taken off their bills and Dwr Cymru about £24million.
The discounts will be applied from next year in the form of lower bills, not as direct of one-off payments.
Meanwhile, some companies will be able to charge customers more after improving their performances, according to Ofwat.
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Severn Trent Water will be allowed to charge nearly £89million across the 4.6million customers it serves.
United Utilities can charge more than £25million.
Water bills rise annually from April each year and the discount will be included in bills for 2024/25.
The exact amount the discount will be worth will depend on how many customers each firm has, plus how much bills are set to rise or fall next year.
This can depend on your particular water company and a number of factors at the time, including inflation.
The watchdog regulates suppliers, and if companies don't meet a number of targets, they are hit with penalties.
Here are the 12 water companies that have been told to reduce bills – and the total amount they have to give back.
- Affinity Water – £8million
- Anglian Water – £27million
- Dwr Cymru – £24million
- Hafren Dyfrdwy – £400,000
- Northumbrian Water – £113,000
- SES Water – £1million
- South East Water – £5million
- South West Water (South West area) – £9million
- South West Water (Bristol area) – £2.5million
- Southern Water – £21million
- Thames Water – £74million
- Yorkshire Water – £20million
These suppliers cover most of England and Wales' supply.
But other companies which exceeded their targets will be able to recover more money from customers.
It means their customers could see their bills go up. They include the following:
- Portsmouth Water
- Severn Trent
- South Staffs Water
- United Utilities
The average combined water bill currently stands at £448 a year – but there are ways that you can lower your bill.
How to cut water costs
Unfortunately you're stuck with your local water supplier – you can't move companies like you can with other services.
But there are still ways to save on your bill.
You can save cash by cutting down the amount of time you spend in the shower.
You could cut £70 from your energy bills and reduce your water bills too by reducing your wash time, according to Uswitch.
And leaving the water running while you brush your teeth could add £60 a year to your bills, says Octopus.
The same goes for washing dishes, be sure you turn the tap off as if you’re doing it in the sink, leaving it running will add £25 to your annual bill.
Fixing leaks in the home is another. A leaky loo can waste between 215 and 400 litres of water per day.
Making sure you only use your washing machine or dishwasher when they are fully loaded helps too.
Plus, switching to an aerated shower head could save a household of four £75 on their energy bills and £45 on their water bills every year, Water UK estimates.
An aerated shower blends water with air to create larger droplets of water.
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Many water companies offer free water-saving devices that shave pounds off your bills too – which can slash your bills by hundreds every year.
Contact your supplier or check out savewatersavemoney.co.uk.
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.
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