A system that rewards law breakers is in need of reform

Outcomes-based regulation was a major innovation in the water industry in England and Wales in the 2014 price review (PR14), and we will see more of it in PR19. I am a big supporter of the concept but do have some growing concerns. Are the rewards and penalties associated with the new system fair? Is it right that private companies are rewarded for breaking the law and that their customers pay those rewards? Do the customers who should benefit from this new approach even know what is happening?