Following investigations by OFWAT, Thames Water has obtained two penalties totalling £122.7m, in impact “the most important wonderful ever handed to a water firm in historical past”, in accordance with Surroundings Secretary Steve Reed.
Introduced on 28 Might, the fines – issued over environmental breaches involving sewage spills – have been welcomed by Mark Lloyd, Chief Government of The Rivers Belief as “a welcome signal that the regulators are lastly displaying their tooth in tackling poor efficiency within the water trade”.
Described by OFWAT as “its greatest and most advanced investigation”, the regulator mentioned it had been trying into all wastewater firms’ operations related with sewage remedy works and sewerage networks. One ingredient of that was an August 2024 session on a proposal to impose a £104.5m penalty on Thames Water, alongside an enforcement order which might require the corporate to take steps to make sure its compliance. At present’s announcement marks the finalisation of each the penalty and enforcement order.
The regulator mentioned its investigation into how the corporate was managing its remedy works and wider wastewater community uncovered failings which have amounted to a big breach of the corporate’s authorized obligations, which has brought on an unacceptable impression on the atmosphere and clients.
David Black, Chief Government at Ofwat, mentioned it was “a clear-cut case the place Thames Water has let down its clients and failed to guard the atmosphere.”
“Our investigation has uncovered a sequence of failures by the corporate to construct, keep and function enough infrastructure to satisfy its obligations. The corporate additionally didn’t give you a suitable redress bundle that might have benefited the atmosphere, so now we have imposed a big monetary penalty.”
OFWAT has additionally confirmed that it’ll mpose a £18.2m penalty on Thames Water because of a separate investigation which discovered that the corporate had damaged the foundations regarding the cost of dividends – the primary time such a penalty has been issued to a water firm.
The announcement comes amidst what the Surroundings Secretary mentioned was a report 81 investigations into water firms that have been launched final week, and what he described as “the hardest crackdown on water firms in historical past”.
Account protecting
Trevor Francis, Regulatory Investigations Accomplice, at regulation agency Blackfords LLP, mentioned the report wonderful “displays a broader development of stricter enforcement and diminishing tolerance for systemic environmental mismanagement.”
“This isn’t an remoted incident; somewhat, it alerts a regulatory atmosphere more and more targeted on holding firms accountable for each operational and environmental failings.”
The River Belief’s Mark Lloyd wished to see the cash spent on rescuing rivers. “It’s crucial that these fines are used to rectify the environmental hurt our rivers have been affected by because of their actions, to uphold the precept of polluter pays, and to make sure that they don’t seem to be misplaced to the black gap of Treasury.”
An impartial evaluate of the water system in England and Wales – the Cunliffe evaluate – was launched in October 2024 by the UK and Welsh governments. The ultimate suggestions are anticipated to be revealed in June.
Mark Lloyd mentioned he hoped the evaluate will make potential “a future the place water firms are usually not lurching from wonderful to wonderful and monetary disaster, the place our rivers are wholesome, well-functioning programs that may address the rising incidence of flood and drought, making area for water and nature.”
