BRITAIN’S three biggest water companies have been fined £168 million for sewage spills in the first results of a landmark probe into all 11 of England and Wales’ water firms.
Ofwat chief executive David Black branded Thames Water, Yorkshire Water and Northumbrian Water’s records of polluting rivers and waterways “a catalogue of failure” as they were ordered to pay penalties of £104m, £47m and £17m respectively.
“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 head of the regulator said, insisting that the burden of the fines would fall on investors, rather than customers.
Privatised water companies have faced public outrage over the extent of their pollution and a lack of investment in water infrastructure while customers face rising bills amid high dividends for shareholders and generous pay and bonuses for executives.
Environment Secretary Steve Reed said: “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.”
The government plans to “fundamentally reform the water sector” via new legislation announced last month, he added.
Surfers Against Sewage chief executive Giles Bristow said: “These fines illustrate the sheer state of disrepair of our broken water industry.
“This is a system on its knees and the government must recognise this fact and use their upcoming Water Bill to deliver root and branch reform.”
Charles Watson, chairman of campaign group River Action, said that Ofwat was “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.
“Until the ability of these polluting companies to hand out so much cash is severely curtailed, pollution will continue to be a highly profitable activity, with inadequate incentives for the water companies to fix their creaking infrastructure and stop filling our rivers with raw sewage.”
Greenpeace UK director of policy Doug Parr said: “It is now vital that Ofwat bring in a full ban on shareholder dividends and bonuses for these serial polluters.
“The government should give its full backing and additional resources to regulators like Ofwat and the Environment Agency and recognise that the privatisation of this most vital of industries has failed.”
Unison head of environment Donna Rowe-Merriman warned that the record fines may have come too late to make a difference, although Ofwat’s action “once again exposes the stench of the water companies’ serious failure to act in the public interest.”
The fine could be especially impactful for Thames Water, which is in the grip of a funding crisis and has more than £15 billion of debt.
A spokesman for the firm admitted that untreated sewage spills are “unacceptable, even when they are permitted.”
Northumbrian Water and Yorkshire Water expressed disappointment at the fines.
The former claimed to be “working really hard to continue to deliver for customers and the environment,” while the latter said that it had “co-operated fully” with Ofwat.
