Thames Water could face £104m fine over sewage spills

Ofwat has proposed £168 million of fines for three of England’s biggest water companies for failing to manage sewage spills, including Thames Water which manages wastewater for Watford and most of Hertfordshire.

Its waste treatment facilities have been responsible for multiple overflows near the town this year, including over 800 hours of wastewater released into the River Chess and 50 into the River Colne.

A spokesperson for Thames Water said it took the matter "very seriously" and would continue to cooperate fully with Ofwat's investigation.

Thames Water's Chesham sewage treatment works released untreated water for the whole of March. (Image: Thames Water)

Yorkshire Water and Northumbrian Water could also face £47 million and £17 million penalties respectively as a result of the regulator’s biggest ever investigation into the industry.

In an announcement this morning (August 6), 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 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.

• Sewage pumped into river non-stop for a MONTH - with ‘no respite in sight’
• Sewage pumped into River Colne for over 50 hours

“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, stating: “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.”

A spokesperson for Thames Water said: “We take this matter very seriously and have cooperated at every stage of Ofwat’s investigation. 

“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.”

They added the utility company will continue to “cooperate fully” with Ofwat’s investigation, adding: “We are encouraged that Ofwat recognises that in order to resolve the issues identified any redress needs to be deliverable, affordable and financeable.”