Seven in ten firms meet their performance commitments as net rewards reach £31m
Ofwat has reported that 70% of the 17 incumbent water and wastewater companies met their performance commitments under PR14 with outcome delivery incentive (ODI) rewards net of penalties at £31m.
In the regulator’s first report on the overall services delivered by the companies there were outstanding net rewards for Severn Trent at close to £20m – including a £15m reward for its sewer flooding performance and Anglian at just over £10m.
The greatest net penalty was about £13m at Thames with the next highest at about £2m. The Thames figure included a penalty of some £12m for sewer flooding. United Utilities also accrued rewards of £10m but they were offset by penalties of near £8m for asset health.
Ofwat said it had “no overall concerns with companies performance in 2015-16.”
It added: “Some performance improvements may be down to favourable weather conditions, especially sewer flooding and pollution incidents. But storms Desmond and Eva hit some companies’ performance.”
Performances on the requirement to increase tax transparency “varied in quality” according to Ofwat.