Water regulator Ofwat has imposed a hefty £2.65 million penalty on Anglian Water after the utility giant failed to meet several key performance targets, the company has confirmed.
The penalty stems from Anglian Water's performance during the 2022-23 period, where it fell short on benchmarks related to pollution incidents and customer service. This financial sanction is the result of Ofwat's 'Performance Commitments' framework, which incentivises companies to meet strict targets.
Where Anglian Water Fell Short
According to the regulatory announcement, the company's performance was deemed inadequate in two critical areas:
- Pollution Control: Anglian Water did not meet its target for reducing pollution incidents.
- Customer Service: The company also failed to hit its mark on the 'Water Worries' metric, which assesses how effectively it supports customers who are struggling to pay their bills.
As a direct consequence of these failures, Anglian Water will be required to pay out £2.65 million. Notably, this sum will not be paid as a fine to the government but will instead be returned directly to its customers through their bills over the next financial year.
Company Response and Commitment
A spokesperson for Anglian Water acknowledged the penalty, stating: "We're sorry for where we've fallen short of the standards our customers expect and deserve... We're committed to continuous improvement and are already investing heavily to protect the environment and provide a resilient water supply for the future."
The company emphasised that its performance in other areas remained strong, including meeting targets on water supply interruptions and internal sewer flooding. However, this penalty highlights the increasing scrutiny and pressure water companies are under from regulators and the public to improve their environmental and customer service records.
