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UK water companies are failing to met key targets on sewage pollution and leakage, regulator Ofwat said on Tuesday, as it detailed £158mn in penalties it had imposed on the sector.

Sewage pollution incidents fell by just 2 per cent, compared with a target of 30 per cent for the 2020-25 period, while water leakage fell by just 6 per cent against a target of 16 per cent, according to Ofwat’s annual performance report. The number of sewage flooding incidents fell by 10 per cent against a 41 per cent target amid an overall decline in customer satisfaction.

David Black, chief executive of Ofwat, called for “issues of culture and leadership” to be addressed. “This year’s performance report is stark evidence that money alone will not bring the sustained improvements that customers rightly expect,” he said in a statement.

Speaking to the BBC’s Today programme, Black added: “We continually find that they tend to blame outside causes like the weather, the area that they serve, or even their customers.”

Thames Water will have to make the largest repayment to customers of £56.8mn, despite improving its overall performance from last year.

Additional reporting by Maxine Kelly