North East water company to pay out £15.7 million for failures in sewage network
Northumbrian Water has agreed to pay out £15.7 million for failures in its sewage and water network.
The settlement, announced by water regulator Ofwat, follows an investigation into the company's operations, which found "excessive spills from storm overflows" due to poor maintenance and management of its sewage and water systems.
Lynn Parker, senior director for enforcement at Ofwat, said: "Our investigation has found failures in how Northumbrian Water has operated and maintained some of its sewage works and networks, which has resulted in excessive spills from storm overflows.
"The contraventions we have found at some of their sites will have had an impact on the local environment and customers and it is unacceptable.
"We are pleased that Northumbrian Water has agreed this package.
"We now expect them to move at pace to correct the issues our investigation has identified.
"We hope more companies will follow this example so that the public sees transformative change across the sector."
Ofwat confirmed the £15.7 million enforcement package will be spent on environmental improvements and upgrades to water infrastructure in the region.
Ofwat said the settlement is larger than any fine it could have imposed and ensures the money will be used for direct improvements rather than being paid into the Treasury.
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Heidi Mottram, chief executive of Northumbrian Water, said: "We agree with Ofwat's announcement that the financial settlement will be directed into speeding up our storm overflow reduction plans and in meaningful local initiatives via our Branch Out fund.
"This investment, which will come entirely from Northumbrian Water shareholders and will not be paid for by customers' bills, will enhance our ongoing efforts to support local communities and protect and improve the natural environment here in the North East."
The announcement comes a week after Thames Water was fined a record £122.7 million for breaches related to sewage treatment and dividend payments.
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