Severity – with variation – characterises Ofwat’s wastewater fines for the first three firms

Ofwat came down heavily in imposing fines of between 50% and 90% of the maximum possible value in the first tranche of decisions in its wastewater investigation cases.

It has the power to impose penalties of up to 10% of relevant turnover in such enforcement cases where breaches are found. It opted to impose: Thames Water – 9% of turnover (£104m); Yorkshire Water – 7% of turnover (£47m); and Northumbrian Water – 5% of turnover (£17m).

Ofwat said all three firms had: 

• 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.  

• Shown a strong correlation between high spill levels and operational issues at wastewater treatment sites “which points to these companies not having properly operated and maintained their wastewater treatment works”. 

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

• Been slow to understand the scope of their obligations relating to limiting pollution from storm overflows and failed to ensure that they had in place the necessary information, processes and oversight to enable them to properly comply with those requirements.

Chief executive David Black called this a “catalogue of failure”.

However, the variation in penally applied reflected variations in the scale of breaches identified. Ofwat reported: 

• 67% of Thames’ wastewater works with Flow to Full Treatment (FFT) permits were found to have capacity and operational issues. 16% of its storm overflows associated with its wastewater treatment works were found to be in breach. 

• 16% of Yorkshire’s wastewater treatment works with FFT permits were found to have capacity or operational problems. 45% of its storm overflows associated with its wastewater treatment works were found to be in breach.

• 3% of Northumbrian’s wastewater treatment works with FFT permits were found to have capacity or operational problems. 9% of its storm overflows associated with its wastewater treatment works were found to be in breach. 

None of the money is recoverable from customers, and Ofwat said it would also ensure customers are not charged twice where additional maintenance is required.

On top of the fines, Ofwat is consulting on enforcement orders which will require each company to rectify the problems identified to ensure they comply with their legal and regulatory obligations.

All eight other water and sewerage companies in England and Wales are subject to Ofwat wastewater investigations, and the whole sector is under investigation by the Environment Agency.