Water firms to pay £67m for failing customers

Thames Water and Southern Water will have to return £53m and £46m respectively to their customers

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The water sector’s regulator Ofwat has announced water companies have to pay a total of £67 million after missing targets on customer service.

The outcome delivery incentives (ODIs) is a scheme that rewards or issues fines to companies for outperformance or underperformance against their performance commitments which are reviewed year-on-year.

Performance commitments are the pledges companies made to their customers and stakeholders at the 2019 price review about service levels to make progress towards their outcomes.

Thames Water will have to pay £53 million and Southern Water will repay £46 million into the redress fund.

Severn Trent Water will receive £25 million as an outperformance payment – that is given as a financial reward when a company performs better than the performance commitment level.

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