Water customers in Greater Manchester and the rest of the North West could see a reduction in their bills from 1 April 2027, after the regulator Ofwat proposed that United Utilities return £13.4m to customers for missing performance targets in 2025-26.

Ofwat published its draft decisions on 14 October. Its document for United Utilities puts the company's net underperformance payment at £13.422m, after an adjustment that applies across the sector. The money would be taken off customer bills in 2027-28. Ofwat says it must make its final determinations by 15 December 2026.

United Utilities is one of several companies facing a bill reduction. Across the industry, Ofwat's draft figures add up to £107m returned through lower bills in 2027-28, with the largest reductions at Yorkshire Water (£75.1m) and Thames Water (£45.8m) in Ofwat's table. Two companies that met their targets, Severn Trent and Northumbrian Water, would be allowed to raise bills.

Ofwat says the effect on individual customers will vary. The Guardian quoted the regulator as saying bills are “affected by a range of factors” and that the effect “will vary by company and customer type”. The MEN reported that Yorkshire Water customers could see an average cut of about £27, but the sources checked for this article do not give an average figure for United Utilities customers.

The MEN also reported that many households may see little relief, because cuts are likely to be offset by recent plans to let water companies raise tariffs by a further £3.4bn on top of the 36% average rise agreed for the five years to 2030.

Ofwat's sector overview also says it is deferring its determination on United Utilities' reported 2025-26 performance and payment “to give us time to consider further information”.

A United Utilities spokesperson told the MEN: “In 2025/26, we improved year-on-year performance across more than 80% of our key performance measures.” The company added that the regulatory framework ensures money is returned to customers through bill adjustments where targets are missed.

Sources: Ofwat, draft determination for United Utilities; Ofwat, sector overview of draft determinations; the Guardian, 14 October 2026; Manchester Evening News. This article was produced with the help of AI tools and checked by an editor against the sources above.