Water bills across the North East could rise in the new year, as Northumbria Water outperformed its annual targets, despite increasing pollution levels. 

In regulator Ofwat's annual performance report, Northumbria Water was one of only four companies that beat their targets and will be allowed to charge more next year, as part of an incentive scheme.

But questions remain as to whether these improvements are good enough, as the company's report card was not positive across the board.

The company has seen one of the country's biggest rises in pollution incidents, with a 65 per cent year on year increase, which regulator Ofwat labelled "disappointing."

Nationally, other companies have fallen further behind on key targets resulting in a total sector underperformance penalty of £157.6m, meaning many consumers will get discounts on their bills. 

For campaign group Surfers Against Sewage, frustration is mounting at the "broken" water system in the UK. 

The Northern Echo spoke to members of the public about the report, with many saying they felt that potential price rises were "shocking" as issues with leaks and pollution persist.

Though water bills are far lower than gas and electricity, some senior citizens believe that the change could add "insult to injury" after cuts to the winter fuel allowance. 

Though her household bill is only low, Shirley Smith, 71, from Darlington, said she believes the company "should have to improve the quality of their services" before charging more. 

She claimed a recent incident on the town's Neasham Road, which saw a water main burst, was not repaired for days, and saw a large amount of water leaked. 

Northumbria Water said it is pleased that the Ofwat report had acknowledged them as an "industry leader" in areas like internal sewer flooding and customer experience, but acknowledged there was "more to do".

In August, Ofwat proposed a £17m fine for Northumbria Water for historic sewage spills. 

Darlington shopper Catherine Dunne said "it is a shame" that water bills are increasing in the wider cost of living crisis. 

She added: "I am feeling the pinch more, everything is getting more expensive, and the fuel allowance was a big help." 

Mark Bennington, 62, from Hurworth, said water firm's sewage overflows were "shocking". 

"The problem is that the money we do pay isn't going towards fixing issues. It is completely wrong, and Labour should have looked at it right from the beginning."

A spokesperson for Northumbrian Water said: “The Ofwat company performance report recognises that we are one of only four companies who have delivered an outperformance of our targets for our customers, although the categorisation means that we are scored as ‘average’ alongside 13 other water companies. 

"We are an industry leader for the lowest number of customers affected by internal sewer flooding, something that is incredibly important to us and to our customers, and the report highlighted our good progress around the issue.

“We’re pleased to also be one of the top performing companies for Ofwat’s measure of customer experience and service. Demonstrating our commitment to be the very best water company when it comes to serving and supporting our customers.

“We know there is more to do. The hard work will continue, and we will keep on improving, working hard for our customers, our communities and helping improve our environment.” 

Elsewhere in the region, Yorkshire Water will have to pay a £36m penalty for underperformance, with bills slashed to reflect the penalties. 

A spokesperson for the company noted that Yorkshire water had made "great improvement" in reducing leaks, customer perception and registration, and their wastewater network. 

They added: "Unfortunately, in other areas we did not meet some of our commitments and, as a result, our customers will receive an adjustment to our bills from April next year.

"Despite this, we remain committed to doing right by our customers and delivering more of what they expect."

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Commenting on today's report Giles Bristow, the CEO of Surfers Against Sewage, said: "By now, we all know the story: it's yet more failures from a failing industry who are taking the public, regulator and government for a ride.

"The absurdity of the fat-cat water industry money-go-round would be laughable, if it wasn't proving so catastrophic to the health of people and our wild waters. 

 "This a broken system on its last legs and we're determined to kick it to the ground and build something better for our wild waters. Only a complete restructure of how our sewerage is managed, governed and financed will deliver the thriving rivers, seas and ocean that the public rightly expect and have been demanding."