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UK regulator proposes to cut water bills by $319 million
Ofwat said the draft plan would return £107 million to bills in 2027-28, with Yorkshire Water and Thames Water facing the biggest penalties.
Ofwat announced plans to cut water bills by £240 million by 2029-30, penalizing suppliers for failing environmental and customer service targets.
The regulator designed these payments to hold water companies accountable, with penalties for falling short and rewards for outperforming expectations.
Yorkshire Water and Thames Water face the largest reductions of £75 million and £46 million respectively, while Severn Trent and Northumbrian Water may receive outperformance payments.
Households will see £107 million returned in 2027-28, though these cuts may be offset by separate plans allowing companies to hike annual tariffs by £3.4 billion.
Ofwat will finalize incentive payments by December 15, with adjustments taking effect on April 1 next year, though impacts vary by company and customer type.