Major water companies fined for ‘catalogue of failure’

Three major water companies are facing fines totalling £168 million for failing to manage their wastewater treatment works and wider sewer networks. 

Water industry watchdog Ofwat proposes to penalise Thames Water in the amount of £104 million, Yorkshire Water for £47 million, and Northumbrian Water for £17 million, in the first batch of outcomes from its biggest-ever investigation. 

Ofwat found all three companies have: 

• ‘Harmed the environment and customers’ by failing to ensure discharges of untreated wastewater from storm overflows occur only in exceptional circumstances. 

• Shown a strong correlation between high spill levels and operational issues at treatment sites, pointing to improper operation and maintenance.  

• Failed to upgrade assets, where necessary, to ensure they meet the changing needs of the local area. 

• Been slow to grasp the scope of their obligations in limiting pollution from storm overflows. 

• Failed to have in place the necessary information, processes and oversight to limit pollution from storm overflows. 

What are storm overflows?  

Storm overflows are designed to release water in exceptional circumstances, when the sewerage system is at risk of being overwhelmed, such as during unusually heavy downpours or snowfall, to prevent sewage flooding into people’s homes. 

Ofwat can impose a financial penalty on companies, the value of which can be up to 10 per cent of relevant turnover: 

• Thames Water – 9 per cent of turnover 

• Yorkshire Water – 7 per cent of turnover 

• Northumbrian Water – 5 per cent of turnover 

Fines plus enforcement orders 

In addition to the fines, enforcement orders will require each company to rectify the problems, to ensure they comply with their legal and regulatory obligations. 

The scale of the breaches differs between each company:  

• Thames Water – 67 per cent of its treatment works with capacity and operational issues. 16 per cent of its storm overflows in breach. 

• Yorkshire Water – 16 per cent of its treatment works with capacity or operational issues. 45 per cent of its storm overflows in breach. 

• Northumbrian Water – 3 per cent of its treatment works with capacity or operational issues. 9 per cent of its storm overflows in breach. 

The companies will not be able to recover the money from customers. 

“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,” said Ofwat’s chief executive David Black.  

“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. 

“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 water sector is facing unprecedented challenges, with climate change, population growth, urbanisation, and emerging pollutants all putting pressure on the environment across England and Wales.   

Ofwat said eight further cases of this kind are also currently under investigation. 

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