Water company to be awarded £38.4m after cutting sewer flooding

Severn Trent Water could charge customers an extra £38.4m for reducing sewer flooding incidents and South West Water faces a £2m penalty for serious pollution incidents

Water companies are being rewarded for beating their own targets. Photograph: 123RFSevern Trent Water will be allowed to charge customers an extra £38.4 million to reward its performance for reducing sewer flooding, according to proposals by regulator Ofwat.

The figure was revealed by Ofwat as part of a consultation on adjusting the maximum revenue that three water companies can charge customers from April 2018.

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