Three water companies face £168m in fines over sewage

Industry regulator Ofwat has proposed £168m of fines for three of England's biggest water companies for failing to manage their wastewater treatment works, including a £104m fine for Thames Water.

- ANDY GREGORY

The penalties result from severe mismanagement of sewage treatment works, including systemic failures in the use of storm overflows, causing extensive environmental damage and impacting customers, the watchdog said. Ofwat’s chief executive David Black said the watchdog’s biggest ever investigation had uncovered a “catalogue of failure” and showed that the firms “routinely released sewage into our rivers and seas, rather than ensuring that this only happens in exceptional circumstances as the law intends”.

The proposed penalties are subject to consultation but would see Thames Water fined £104m, Yorkshire Water fined £47m and Northumbrian Water fined £17m – equating to 9 per cent, 7 per cent and 5 per cent of the companies’ relevant turnover. Ofwat is permitted to impose fines of up to 10 per cent.

The firms will not be able to recover the money to pay for any proposed penalties from their customers, according to Ofwat, which said it would ensure that customers are not charged twice where additional maintenance is required.

Speaking to Sky News, Mr Black accepted that Thames Water “faces serious challenges” but said it was “not a relevant consideration” for the watchdog that such a penalty could tip the struggling utility firm into bankruptcy.