Ofwat proposes fines for Thames Water, Yorkshire Water and Northumbrian Water over sewage spills

The penalties relate to water firms’ management of their wastewater treatment and sewer systems, which have come under heavy criticism for releasing too much pollution into rivers.

In an announcement on Tuesday morning, 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 added that there was a “strong correlation” between high spill levels and operational issues at their wastewater treatment sites, “which points to these companies not having properly operated and maintained their wastewater treatment works”.

It said the firms had failed to upgrade their assets where necessary, and had been slow to grasp their obligations to limit pollution from storm overflows.

Ofwat chief executive David Black said: “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.

“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.

“The level of penalties we intend to impose signals both the severity of the failings and our determination to take action to ensure water companies do more to deliver cleaner rivers and seas.

“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.

“Looking to the future, we want to transform companies’ performance under our new price control that starts in April next year, so we reduce spills from sewage overflows by 44% by 2030 compared to 2021 levels.”

Environment Secretary Steve Reed welcomed the fines.

“The unacceptable destruction of our waterways should never have been allowed – and it is right that those responsible for illegally polluting our rivers, lakes and seas face the consequences,” he said.

“This Government will fundamentally reform the water sector.

“We have announced our first steps to clean up the water industry in our Water (Special Measures) Bill, to cut sewage pollution, protect customers and attract investment to upgrade its crumbling infrastructure.

“We will outline further legislation to transform and reset our water industry and restore our rivers, lakes and seas to good health.”

Meanwhile, Charles Watson, chairman of campaign group River Action, said: “Thankfully the water regulator, for so long toothless, is finally waking up to the scale of the public’s outrage and we are starting to see some meaningful penalties being imposed upon the worst offenders.”

He also criticised water companies for paying out billions in shareholder dividends in recent years.

“Until the ability of these polluting companies to hand out so much cash is severely curtailed, pollution will continue to be a highly profitable activity with inadequate incentives for the water companies to fix their creaking infrastructure and stop filling our rivers with raw sewage,” he said.

A Yorkshire Water spokesman said the firm is “disappointed” with the proposed fine and that it had “co-operated fully” with the investigation.

The spokesman pointed to a £180 million plan to reduce sewage discharges before April 2025.

He added: “We will be responding to the notice by 10th September.”

A Thames Water spokesman said: “We regard all untreated discharges as unacceptable, even when they are permitted, and are taking action to improve the health of our rivers as a key area of focus and investment.”

The spokesman suggested Ofwat may reduce the financial penalty if Thames Water commits to redress the failures, adding that the company will respond to the proposed fine “in due course”.

A Northumbrian Water spokesperson said they are “very disappointed” with the fines, adding that the firm is “working really hard to continue to deliver for customers and the environment”.