Ofwat has proposed that three water companies will be fined a total of £168m for failing to manage their wastewater treatment works and networks, as part of the first batch of outcomes from its biggest ever investigation.

The penalties proposed for consultation will see Thames Water fined £104m, Yorkshire Water fined £47m and Northumbrian Water fined £17m.

The penalties relate to their management of wastewater treatment works and wider sewer networks including their operation of storm overflows. These are designed to release water in exceptional circumstances, when the sewerage system is at risk of being overwhelmed, such as during unusually heavy downpours or snowfall, to prevent sewage flooding into people’s homes.

Ofwat has found that all three companies have:

• 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.

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Covered in The Guardian Three water firms face record total £168m fine after sewage investigation

Ofwat publishes commitments for Thames

Ofwat has published a series of commitments that Thames Water will agree to comply with after it lost two investment grade credit ratings; the company breached its licence following the credit rating downgrades by Moody’s on 24 July and S&P on 31 July.

A consultation on the commitments, ahead of a final decision, is now live and the deadline for responses is 5pm on Friday 16 August.

The commitments cover:

• The appointment of an independent Monitor to report on the company’s progress, including against its transformation plan. The independent Monitor will report back to Ofwat frequently and be entitled to access to company information;
• Developing and delivering a suitable operational business plan to achieve turnaround;
• Taking the steps required to deliver an equity raise;
• New non-executive director board appointments.