Ofwat has proposed £168 million of fines for three of England’s biggest water companies for failing to manage sewage spills, including a £104 million penalty for Thames Water.

The proposed fine for Thames Water, as well as a £47 million penalty for Yorkshire Water and £17 million for Northumbrian Water, will now go to a public consultation following the first batch of results from its biggest-ever investigation into the industry.

It comes amid growing frustration over sewage spills in the county with Ofwat finding the three companies failed to sufficiently invest in and maintain their networks, leading to repeated releases of raw sewage.

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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’s chief executive David Black said:  “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.”

Environment Secretary Steve Reed welcomed the fines.

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“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 the 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.

A Thames Water spokeswoman 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.

"This is the latest stage in the investigation process and we will continue to cooperate fully."

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About the author

Rob is a digital reporter who covers a wide range of topics.

He joined the Oxford Mail in February 2023 having previously been at sister paper The Bucks Free Press for two years. 

Rob completed a Sports Journalism degree before earning his NCTJ Diploma at Darlington College and can be found on X at @RobertFolker.