ANGLIAN Water has been ordered to pay back millions of pounds to customers after being fined by the water services regulation authority – but consumers may not feel the benefit.

The water company, which supplies drinking water to 4.3 million people across much of eastern England, must pay £8.5 million back to customers after Ofwat ruled supply interruptions and flooding caused significant underperformance.

A total of 11 water companies in England and Wales have been hit with penalties, with Anglian Water facing the sixth highest fine behind South West Water, Yorkshire Water, Northumbrian Water, Southern Water, and Thames Water, who are required to pay in excess of £50 million.

The £8.5 million fine is to be paid back to consumers by having the amount taken off across their water bills. 

But with Anglian Water serving 4.3 million people, the amount of money to come off bill receipts adds to little more than £2.

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The situation is compounded by the fact that, for the 2023-24 financial year, Anglian Water is entitled to increase the amount it charges customers in line with inflation.

The average bill for Anglian Water customers sits at approximately £38 per month, but if the company increases its bills in line with November’s inflation rate – which could be as high as 10 per cent according to the Bank of England – households could see a bills rise by £3.80.

A spokesman for Anglian Water said the company is keen to better its performance over the coming years.

He said: "As part of the water industry regulatory framework, Ofwat measures company performance across many different areas.

"This is reflected in outperformance or underperformance payments depending on individual company performance against specific measures.

"While we’ve performed well in some areas, we are not where we need to be in others. This is something we’re determined to improve upon."

Leakage, low pressure, and delivery of an environmental programme were identified as stronger areas of Anglia Water’s performance, according to Ofwat.