Severn Trent gets green light to cut bills

Ofwat said Severn Trent, South West Water and United Utilities delivered "such high-quality plans" that they have passed its assessment.

It said the three companies set out how they will cut bills by up to £70 in real terms while "significantly improving support for vulnerable customers and deliver real change in the areas that matter most to customers, like cutting leakage".

Ofwat said four companies – Thames Water, Southern Water, Affinity Water and Hafren Dyfrdwy – have the most work to do to pass the review.

Severn Trent, which has its headquarters in Coventry and serves millions of customers across the Midlands and Mid Wales, has pledged to cut average water bills by £18.

Chief executive Liv Garfield said: "I’m pleased that Ofwat has recognised the progress made across the sector, and I’m personally delighted we’ve been given fast-track status for the first time, showing Ofwat shares our belief that customers will get the best possible outcome from our plans for the next asset management plan.

"It’s a great testament to everyone who was involved in pulling the plan together, especially to those customers who helped us create the proposals.

"But we’re also very aware this is just the start of a five-year journey for us as a company as our teams now have to deliver everything we’ve promised, whether that’s keeping bills low, improving our services, or having a greater societal impact on our communities.

"It’s going to be a real challenge but it’s one we’re confident we can meet."

More for less

Rachel Fletcher, Ofwat chief executive, said: "We have challenged all water companies to deliver more for less for customers over the next five years.

"They've listened to the customers they serve. We're seeing an increased focus on the things closest to people's hearts such as keeping bills affordable, cutting leakage, protecting the environment and helping those most in need.

"Three companies have already stepped up to the mark with high-quality plans and stretching commitments to customers for the next five years.

"The rest of the sector now needs to meet this high standard so that customers across the country get better and more efficient services."

Thames Thames is Britain's biggest water company and its chief executive Steve Robertson said: "Thames Water is disappointed with today's announcement from Ofwat on our £11.7 billion five-year business plan, which is built on the feedback of nearly one million customers.

"We are seeking Ofwat's permission to invest more in areas where we know it is needed. Instead, it appears that we are being asked to reduce our current levels of spending.

"We are concerned that this will make it harder to meet the needs and expectations of our customers, amid the challenges of population growth and climate change."

Another 10 water suppliers are deemed "slow track" firms and will also have to rework their proposals for the 2020 to 2025 period.