The water regulator for England and Wales is proposing fines of £104m for Thames Water, £47m for Yorkshire Water and £17m for Northumbrian Water.
The record penalties relate to the companies’ management of wastewater treatment works and wider sewer networks, including storm overflows, which are designed to operate only in exceptional circumstances when the system is at risk of being overwhelmed.
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During the investigation – its biggest ever – Ofwat found that all three suppliers failed to ensure that discharges of untreated wastewater from storm overflows only happened in exceptional circumstances. This resulted in harm to the environment and their customers.
‘Slow to understand scope of obligations’
Ofwat said that Thames, Yorkshire and Northumbrian Water did not properly operate and maintain their wastewater treatment works and failed to upgrade assets.
The investigation also showed that the water companies were “slow to understand” the scope of their obligations relating to pollution control.
In addition to the proposed fines, Ofwat is also consulting on proposed enforcement orders which will require each company to rectify the problems identified to ensure they comply with their legal and regulatory obligations.
The companies will not be able to recover the money for any proposed penalties from customers and the regulator said it will ensure customers are not charged twice where additional maintenance is required.
‘Water companies must do more’
Ofwat’s chief executive, David Black, said: “Ofwat has uncovered a catalogue of failure by Thames Water, Yorkshire Water and Northumbrian Water in how they ran their sewage works and this resulted in excessive spills from storm overflows. Our investigation has shown how they routinely released sewage into our rivers and seas, rather than ensuring that this only happens in exceptional circumstances as the law intends.
“The level of penalties we intend to impose signals both the severity of the failings and our determination to take action to ensure water companies do more to deliver cleaner rivers and seas.
“These companies need to move at pace to put things right and meet their obligations to protect customers and the environment. They also need to transform how they look after the environment and to focus on doing better in the future.”
The proposed fines are part of the ongoing investigation by Ofwat into all 11 water and wastewater companies in England and Wales.
