The UK’s largest water company, Thames Water, is under investigation over concerns about its failure to complete a significant number of customer-funded environmental schemes.
The probe, by industry regulator Ofwat, will determine whether the delays constitute a breach of Thames Water's operating licence.
The schemes, part of a nationwide initiative running from 2020 to 2025, are designed to mitigate the impact that the water company has on the environment.
Projects include upgrades to sewage treatment works and measures to reduce wastewater spills, crucial for meeting national environmental regulations.
Thames Water originally committed to undertaking 812 such schemes.
However, the company said that more than 100 of the projects are likely to remain uncompleted by the March deadline, according to Ofwat.
Lynn Parker, senior director for enforcement at Ofwat, said: “Customers have paid for Thames Water to carry out these essential environmental schemes.
“We take any indication that water companies are not meeting their legal obligations very seriously.
“Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations.
“If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right.”
Thames Water is currently the only firm regulated by Ofwat to be facing a probe into its environmental protection programmes.
Meanwhile, the parent company of the embattled utilities firm is set to run out of money by late March and risks entering special administration if it does not get court approval for a restructuring plan.
It is in about £16 billion of debt and needs £3.3 billion over the next five years to keep running.
A spokeswoman for Thames Water said the company will “co-operate fully” with Ofwat, stressing: “Customers will not pay twice for investment that has already been funded through customer bills.”
She added that Thames Water has been “very open about the challenges of delivering all the elements” of its programme, “which has been impacted by cost increases that are higher than the inflation index applied to our allowances”.
