Thames Water hit with largest-ever fine issued by regulator Ofwat
Thames Water, the UK's biggest water provider, has been hit by a record fine by regulator Ofwat.
The company has been fined £122.7m following Ofwat's "biggest and most complex" investigation.
It follows two investigations related to its wastewater operations and dividend payouts.
Of the total fine, £104.5m - 9% of Thames Water's turnover - has been levied for breaches of wastewater rules. It's just below the maximum 10% of turnover Ofwat could have applied.
Another £18.2m penalty will be paid for breaches of dividend payment rules.
The fine will be paid by the company and its shareholders, Ofwat said, rather than customers.
Bad news for Thames Water finances
It's bad news for Thames Water, which serves 16 million customers across London and the South East, and has just about fended off effective nationalisation, having secured an emergency £3bn loan. Its debts now top £19bn.
These fines were not factored into Thames Water's financial planning for the next five years. The company's chief executive, Chris Weston, told a recent sitting of the Environment, Food and Rural Affairs select committee that Thames Water's future was dependent on Ofwat being lenient with fines.
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