Ofwat has launched an enforcement investigation into Welsh Water, relating to the accuracy of information reported by the company for its performance on leakage and per capita consumption (PCC), following a notification from the company relating to inaccuracies.

Ofwat sets performance targets for companies on leakage and PCC. Companies are assessed against these targets annually and can be penalised or rewarded, depending on their performance.

In November 2022, Ofwat deferred a decision on the progress Welsh Water has made towards its leakage performance commitment, as it sought to understand how the company calculated its reported performance.

Ofwat will not provide further information on the investigation until it reaches a conclusion.

David Black, Ofwat CEO, said: “We are committed to holding companies to account for performance and for sharing timely, accurate, and complete data with us and their customers.

“We recognise that Welsh Water came to us when it became aware of the issue with the accuracy of its performance data.

“Ofwat’s investigation will consider Welsh Water’s restated performance figures, the circumstances that led to the company reporting inaccurate performance, and what steps it has taken or is taking to address these failings.”

It is understood that Welsh Water is considering how it might remedy the matter with its customers.

Ofwat will consider any remedial plans as part of its investigation, and its decision on any further action.

In a response from the Consumer Council for Water (CCW), Emma Clancy, Chief Executive, said: “We recognise Welsh Water has moved swiftly to admit its mistake and the £10 rebate will go some way to reassuring its customers that it regrets the damage this will have caused to people’s trust in it.

“It is reassuring that the company identified the issue through its own assurance processes.

“Customers will want the company to take the right steps to ensure this doesn’t happen again. Our research shows leakage from water companies affects customers’ own motivation to save water so Welsh Water will need to build trust on this issue.”

The news follows Brecon and Radnorshire MP Fay Jones' meeting last week on Tuesday, May 16 in Westminster, in which there was a discussion about their role in the pollution of rivers in Brecon and Radnorshire, and the steps they are taking to remedy the situation.

The Brecon and Radnorshire MP said she made it "very clear" that the conservation of Special Areas of Conservation - which applies to the Wye Valley - is not optional.

Speaking following this morning's news, Ms Jones said: “Troubling news from Ofwat this morning as it announces an enforcement investigation into Welsh Water.

"It is important now that we do see full participation and a commitment to right these wrongs on water quality in our rivers in Brecon and Radnorshire, and I will be monitoring closely to help ensure that.”