Thames Water will have to return £51 million to its customers and Southern Water almost £30 million after missing key performance targets.

The Liberal Democrats are calling for water sector regulator Ofwat to be replaced by a “tough new independent regulator” following ongoing widespread criticism of sewage discharges into Britain’s rivers.

Ofwat has said that it is planning to engage with the solution owners of strategic regional water resource solutions under the RAPID programme to discuss the funding framework for AMP8 "in due course."

Ofwat CEO David Black and Chair Iain Coucher have rejected suggestions by an influential Parliamentary Committee that since privatisation of the water sector, recent Price Reviews had focussed on keeping customer bills low at the expense of allowing sufficient investment in water and wastewater infrastructure.

According to the newly-released Regulating for people, the environment and growth, 2021 (RPEG) annual report by the Environment Agency, the environmental performance of the water companies in England was the worst seen for years.

The Government has delayed the publication of environmental targets relating to the Environment Act 2021 which were due to be published today.

Former Ofwat Chief Executive Cathryn Ross has raised the question of whether the Price Review process - the regulatory framework of five-year price reviews for the water sector - is still fit for purpose.

 The House of Lords Industry and Regulators Committee will continue its inquiry on the work of Ofwat, the UK’s water regulator, by taking evidence from Ofwat’s CEO David Black, and Chair Iain Coucher from 10.30am on Tuesday 25 October.