Ofwat launches wastewater investigations into four more water companies

Britain’s water industry regulator has launched enforcement action against Welsh Water, Hafren Dyfrdwy, Severn Trent and United Utilities over wastewater management.

Ofwat has sent formal notices to the four companies to obtain evidence for an investigation, meaning the watchdog is now investigating all 11 water companies in England and Wales over the wastewater issue.

It said it launched the cases after analysis of the groups’ environmental performance and data raised concerns that the four companies “may not be meeting their obligations to protect the environment and minimise pollution”.

David Black, chief executive of Ofwat, said: “The fact that Ofwat now has enforcement cases with all 11 wastewater companies in England and Wales shows how concerned we are about the environmental performance of the sector.”

The regulator originally launched an investigation into Southern Water in 2019, when the company was fined £126m for deliberately misreporting its performance and failings in the operation of its wastewater treatment plants.

Ofwat then launched cases in 2022 against Anglian Water, Northumbrian Water, South West Water, Thames Water, Wessex Water and Yorkshire Water.

Black added: “Where we find companies failing to meet their obligations, we will continue to take action – in recent years, we have imposed penalties and payments of more than £300m on water and wastewater companies.

“This is the largest and most complex investigation Ofwat has ever undertaken. However, Ofwat is committed to concluding these cases as quickly as possible.”

The UK water sector has faced considerable public criticism in recent years for its dismal record in tackling wastewater leaks and spills.

According to the Environment Agency, the number of sewage spills soared by 54 percent, from 301,091 in 2022 to 464,056 last year.

The jump was partly blamed on bad weather, with England experiencing its highest rainfall levels since 2012 and its sixth wettest year on record.

At the same time, water companies have continued to pay out hefty dividends to shareholders and bonuses to executives, sparking further anger from environmental activists.

Severn Trent paid its boss Liv Garfield £3.2m, including a £584,000 bonus in 2023, despite being responsible for around 60,000 sewage spills that year.

To clean up Britain’s rivers and waterways, Ofwat ruled last week that English and Welsh water companies could spend £88bn between 2025 and 2030 on infrastructure improvements.

Funding for these proposals will come from an increase in household water bills of an average of £94 over the five-year period, excluding inflation, rather than the £144 initially proposed by the water companies’ business plans.