Welsh Water to pay out almost £40m after misleading over poor performance
Ofwat said the utility firm misreported leaks and water consumption performance to customers and the regulator over five years.
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Your support makes all the difference.Welsh Water has been ordered to pay nearly £40 million to customers after the industry watchdog found the firm misled them over its record of tackling leaks and saving water.
Ofwat said an investigation that started in May last year found evidence of a “significant failure of governance and management oversight” at Welsh Water led the firm to misreport leaks and performance over a period of five years.
Welsh Water will have to pay £39.4 million in redress to customers for its failures, with £15 million already announced by the firm, and another £9.4 million to follow, which will lower bills for users.
Today's announcement puts the industry on notice that we have the resources and will act when companies fail to meet their obligations to customers
An extra £15 million of costs will be absorbed by the water firm, rather than being passed on to customers, according to Ofwat.
Ofwat said Welsh Water also needed to address its poor performance on leaks and water usage, with the firm pledging to invest an extra £59 million in the current five-year price period.
It comes amid intense scrutiny of the water industry and an outcry over the sector’s dire performance on leaks, raw sewage spills and poor customer service.
There have been mounting calls for the sector to renationalised.
David Black, chief executive at Ofwat, said: “For five years, Welsh Water misled customers and regulators on its record of tackling leakage and saving water.
“It is simply indefensible and that is why we are making Welsh Water pay this £40 million to benefit its customers.
“Today’s announcement puts the industry on notice that we have the resources and will act when companies fail to meet their obligations to customers.”