FAILING water companies have been ordered to take a total of £114million off bills.
They were punished by watchdog Ofwat for lagging behind targets on pollution, leaks and customer service.
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Thames Water, which faced a cash crunch this year, must repay £100million for falling short for a second year running.
Southern Water will take the second biggest hit of £42.9million while Yorkshire Water has to reduce bills by £19million.
However, the total to be repaid next year is reduced by rises — such as £88million for Severn Trent Water — allowed for those that did hit targets.
Ofwat chief executive David Black said: “The targets were designed to drive improvements for customers and the environment.
“However, our latest report shows they are falling short, leading to £114million being returned to customers through bill reductions.
“While that may be welcome to bill payers, it is very disappointing news for all who want to see the sector do better.
“It is not going to be easy for companies to regain public trust but they have to start with better service for customers and the environment.”
Ofwat said it is taking action against six suppliers over potential failures on sewage discharges into rivers and the sea — plus two more where it doubts the accuracy of leak reports.
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Thames Water, which raised £500million from investors in March amid talk about whether it should be renationalised, said that last year it had met 55 per cent of its annual performance commitments.
It has blamed a summer drought and winter deep freeze for burst pipes.
