Ofwat finalises penalties on firms for performance

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Ofwat has confirmed plans for multiple firms to return money to customers, with Thames Water pinned for over £73m.

Anglian Water is set to return £27m to customers, with Dŵr Cymru and Southern Water returning £24m and £21m respectively. The full list of penalties can be found here.

Last month, UK water firms announced plans to invest £96bn into their infrastructure over the next few years starting from 2025, including a marked increase in capital expenditure. The plans will need to be approved by Ofwat.

Many water companies are turning to the Direct Procurement for Customers (DPC) model to deliver a range of capital improvements, to ensure greater competition and reduce costs to water ratepayers.

Recently, a market engagement event was held in London to gauge interest in a number of new reservoir projects, which could feature the deployment of a Thames Tideway-like model for delivery.