Water firms in England and Wales have been ordered to return £157.6m to customers due to their poor performance.
Ofwat said the rebate would come off bills for households and businesses in 2025-26.
Last year, the water regulator ordered firms to repay £114m as part of a similar move.
It comes as water bills in England and Wales are set to rise by an average of 21% over the next five years.
Earlier this summer, the regulator announced it was investigating all wastewater companies due to concerns that some may not be meeting their obligation to minimise pollution.
Last year, industry body Water UK apologised on behalf of firms for “not acting quickly enough” on spills.
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