CAMPAIGNERS called for an end to water privatisation as Thames Water was today fined a record £122.7 million for breaking rules over sewage treatment and paying out dividends.

An investigation into Britain’s biggest water supplier revealed “a series of failures by the company to build, maintain and operate adequate infrastructure,” said water regulator Ofwat.

Nearly £170m of dividend payments by Thames in October 2023 and March 2024 were not justified in “a clear-cut case where Thames Water has let down its customers and failed to protect the environment,” said Ofwat chief executive David Black.

We Own It founder and director Cat Hobbs said: “None of this changes the underlying problem — as long as water is privatised, we will continue to be ripped off, and rivers will continue to be polluted for profit.”

River Action chief James Wallace added that “nothing will change unless the privatisation of Thames Water stops.” He urged Environment Secretary Steve Reed to “put this failing company into special administration and restructure its ownership and governance so it can be owned by and operated for public benefit.”

Water industry union GMB national officer Gary Carter said: “This is just further evidence that water privatisation has failed.

“Public interest should come first and Thames Water should be brought back into public ownership.”

Green Party MP Ellie Chowns said that “the time has come” to bring water companies into public ownership.

Ofwat said that the fine, which comes as water companies face public outrage over sewage pollution, rising bills, high dividends and executive pay and bonuses, must be paid by Thames and its investors, not by customers.

A Thames spokesman said that it takes its environmental responsibilities “very seriously” and said it was making progress addressing the issues.

The firm, which hiked consumer water bills for its 16m customers by an average of 31 per cent in April, is in about £19 billion of debt and is trying to restructure its finances via a sale to US investment firm KKR.

Thames had about five weeks’ worth of cash left before going bust before securing an extra £3bn loan deal which prevented it from being brought under government control earlier this year, MPs have heard.

Mr Reed said: “The era of profiting from failure is over.”