Customers will receive £114m off their water bills next year as the regulator has said water companies fell short of standards.

The majority of water and wastewater companies in England and Wales underperformed, Ofwat said as part of its water company performance report.

Water firms were classed as leading, average or lagging in categories including pollution incidents, customer service and leakage. No company was ranked as leading.

Seven are categorised as ‘lagging’ in the 2022-2023 targets: Anglian Water, Dŵr Cymru, Southern Water, Thames Water, Yorkshire Water, Bristol Water and South East Water.

A further ten companies are listed as average.

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Improvements have been made in areas since 2020, Ofwat said, such as leakage and internal sewer flooding, but progress has been “too slow”. Last year all but one company achieved the performance level for unplanned water outages.

It follows an apology from water and sewage firms in England for “not acting quickly enough” on spills. In May they vowed to spend £10bn to fix the problem.

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