Greater Manchester water bills could be cut from 1 April 2027 as United Utilities faces a £13.4m net Ofwat penalty, with a final decision due by 15 December

United Utilities, which supplies water and wastewater to Greater Manchester, faces a net penalty of £13.4 million under draft Ofwat proposals. If the regulator confirms it, the money would return to customers through their bills from 1 April 2027. Ofwat expects to make its final decision by 15 December.

The penalties cover the 2025-26 financial year. Ofwat is proposing them for companies that missed environmental and customer-service targets under its outcome delivery incentive (ODI) system. Customers cannot switch suppliers, so the system automatically penalises or rewards each company depending on whether it hit its agreed targets.

Ofwat stresses that these are draft figures and that the effect on bills will vary by company and customer type. No per-household figure for United Utilities customers has been set out.

Any credit could also be cancelled out. Separate proposals would let water companies raise charges by a further £3.4 billion, on top of the average 36% rise already agreed for the five years to 2030.

Across England and Wales, Ofwat’s draft plans would return £240 million through lower bills by 2030. Of that, £107 million would go back to households and businesses in 2027-28.

• Yorkshire Water: the largest penalty, at £75 million. That works out at roughly £27 off each customer’s bill, refunded in April 2027.
• Dŵr Cymru: £16.7 million.
• South West Water: £16 million.
• Thames Water: bill reductions of around £7 per customer.
• Severn Trent: set to receive £41.8 million in outperformance payments, which could add about £8 to bills.
• Northumbrian Water: set to receive £35.9 million, which could add about £21.

United Utilities says its year-on-year performance improved across more than 80% of its essential performance measures in 2025/26. It has also published a £13.7 billion investment plan for the North West, aimed at cleaner rivers, more reliable water supplies and extra support for customers struggling with bills.

Ofwat’s final decision is expected to be made in December. It will settle whether, and by how much, the penalty reaches Greater Manchester bills next April.