Unlimited rewards for water companies tackling pollution and leakage

Ofwat has removed the cap on how much a water company can be awarded for meeting tougher targets on water pollution and leakage, and leakage is on the rise

Leaks from water company pipes increased last year. Photograph: GiorgioRossi73/123RFOfwat has removed the cap on the total amount of money a water company can earn from exceeding pollution, leakage and customer service targets.

The move was set out in the regulator’s methodology for the forthcoming price review (PR19), published on 13 December. The methodology sets out Ofwat’s expectations and requirements for companies preparing their business plans for the 2020-2025 period and how it will incentivise them to meet performance targets including those related to pollution.

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