Thames Water is facing the single biggest fine issued by the water regulator for failing to manage sewage spills and polluting rivers.
Ofwat has proposed fining the firm £104.5 million for the poor condition and management of more than 150 wastewater treatment works and the sewer systems that supply them.
In the biggest investigation by Ofwat, across companies in England and Wales, it also announced a £47 million penalty for Yorkshire Water and £17 million for Northumbrian Water.
Ofwat said the firms “failed to ensure that discharges of untreated wastewater from storm overflows occur only in exceptional circumstances, which has resulted in harm to the environment and their customers”.
It said that there was a “strong correlation” between the number of spills and operational issues, “which points to these companies not having properly operated and maintained their wastewater treatment works”.
Ofwat chief executive David Black stressed that penalties would target investors, not customers. He told Sky News: “We set the rules on what charges they can recover from customers, so we make absolutely no provision for fines in the levels of bills that is set for customers.”
Campaigners welcomed the fines but said they highlighted the “sheer state of disrepair” of the industry. Surfers Against Sewage chief executive Giles Bristow said: “This is a system on its knees and the Government must recognise this fact and use their upcoming Water Bill to deliver root and branch reform.”
Thames Water treats and recycles wastewater at 354 wastewater treatment works. Of these, Thames admits 157 are “sites of concern”. According to Ofwat, Thames has been aware of problems at many waterworks “for some time”, and has previously been subject to enforcement action by the Environment Agency.
There were 241 storm overflows at Thames waterworks plants in 2023. According to Ofwat, there was a “significant increase in the number and the duration of spills”, which lasted for a total of 141,738 hours. Last year, 91 storm overflows spilled more than 60 times. In April, the Standard revealed that sewage flowed into London’s rivers for almost 10,000 hours last year.
Today’s proposed fines are subject to public consultation until September 10, after which Ofwat will announce a final decision.
Separately, an investigation by the Environment Agency into all water and wastewater companies in England and Wales is continuing.
