Eyewatering fines for UK water companies

Three UK water firms face fines totalling £168 million (€195.6 million) for inadequately managing their wastewater plants and networks.

With sewage spills into rivers and the sea more than doubling in 2023, Britain’s Water Services Regulation Authority (Ofwat) proposes to sanction Thames Water with the stiffest fine of £104 million (€121.1 million).

Yorkshire Water will pay £47 million (€54.7 million) and Northumbrian Water £17 million (€19.8 million).

After investigating whether the three companies provided customers with the service they were legally entitled to, Ofwat found that insufficient investment and deficient management had resulted in “repeated releases of raw sewage” into the country’s waterways.

Ofwat has the power to fine companies up to 10 per cent of their annual sales and the 9 per cent imposed on Thames Water reflected the severity of its offences, Ofwat’s chief executive Thomas Black told the BBC.

In response, a Thames Water spokesperson said that the company took the findings “very seriously” and had cooperated at every stage of the investigation.

“We regard all untreated discharges as unacceptable, even when they are permitted,” they told the broadcaster.

Yorkshire Water and Northumbrian Water said they were “disappointed” by Ofwat’s decision.

At the same time Britain’s water companies hope to increase their customers’ bills by more than 44 per cent over the next five years to pay for improvements to infrastructure.

In Thames Water’s case, the company has requested an increase of £191 (€222.47) spread over this period although Ofwat has announced that this should be limited to £99 (€115.33).