Southern Water to Cut Customer Bills Amid Pollution Penalty

Southern Water customers will see reduced bills next year after the company was fined for failing to meet pollution and performance targets.

The water provider has been hit with a £31.9 million share of a £157.6 million penalty issued by the regulator Ofwat. Southern Water fell short of its commitment to cut pollution by 30%, managing only a 2% reduction. The penalty will lead to bill reductions for customers starting in the 2025-26 period, with the exact rebates to be calculated by December.

Ofwat’s annual performance report found no water company in England or Wales achieved its highest rating of “leading,” with Southern Water, Anglian Water, and Welsh Water rated among the lowest performers. The report highlights ongoing concerns about the privatised water sector, including pollution, leaks, and executive bonuses, prompting calls for stronger regulation and cultural changes within the industry.