Latest news with #DavidBlack
Scottish Sun
5 days ago
- Business
- Scottish Sun
Thames Water hit with largest ever fine for water company over sewage spills and breaking rules
RECORD WATER FINE Thames Water hit with largest ever fine for water company over sewage spills and breaking rules Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THAMES WATER has been hit with a £122.7million fine — the largest ever for a water company. It will pay £104.5million for sewage spills, plus £18.2million for breaking the rules over dividend payments. Sign up for Scottish Sun newsletter Sign up Watchdog Ofwat slammed the struggling company for 'letting down its customers and failing to protect the environment'. It said Thames had 'routinely and not in exceptional circumstances' released untreated sewage. And, issuing its first fine over shareholder payments, it highlighted one of £37.5million in October 2023 to the firm's holding company — plus another £131.3million dividend from March 2024. Ofwat boss David Black, said: 'Our investigation has uncovered a series of failures by the company to build, maintain and operate adequate infrastructure.' Mike Keil, chief executive of the Consumer Council for Water, said Thames' actions were a 'serious betrayal of customers and the environment'. The fine must be paid by Thames and its investors, and not be passed on to its 16 million customers. Thames hiked its bills by an average of 31 per cent in April. It owes £19billion and is trying to restructure its finances through a sale to US investment firm KKR. Thames insisted it takes its environmental responsibilities 'very seriously' and said it was making progress addressing the issues. Doubling Compensation for Water Issues: Government's Big Move 4 Thames Water has been hit with a £122.7million fine Credit: PA BRANCH GROWTH NATIONWIDE BUILDING SOCIETY says customers have been flocking to its branches over the past year as rival banks pull out of high streets. Nearly 200,000 more have used its branches. Nationwide has the second-largest branch network in the UK behind Lloyds. But Lloyds has been axing hundreds in recent years — with 136 more set to shut over the next year. Nationwide, meanwhile, has pledged to keep all of its nearly 700 branches open until at least the start of 2028. A PAW YEAR FOR PROFIT 4 Pets At Home reported a 16.6 per cent fall in profits Credit: Getty RISING costs and lower animal sales have both dealt a blow to Pets At Home. The chain reported a 16.6 per cent fall in profits in the year to the end of March, to £72.9million. The firm benefited from the boom in pet ownership during the pandemic but demand has fallen since. Profits at its vet arm climbed almost a quarter to £75.9million. But it is facing a probe over prices on items such as pet medications. CLOSING five depots and simplifying its structure has helped Magners and Tennent's maker C&C Group return to profit, as it made £38.5million last year, compared to a £70.9million loss in 2023. It sent shares climbing by 3 per cent. B&Q'S HOT SPELL THE recent warm weather has helped sales at B&Q owner Kingfisher to bounce back up by 5.9 per cent in the past three months. Seasonal products such as garden furniture has flown off the shelves, with sales up by almost a third across B&Q. And they were a fifth higher at Screwfix. But Kingfisher's boss Thierry Garnier remained cautious, warning that 'consumer sentiment remains mixed'. Traders agreed with his negative view, sending shares down almost four per cent. METER SCANDAL'S £140 PAYOUTS 4 Eight companies are set to pay £5.6million in compensation over the meter scandal Credit: Getty EIGHT energy companies will pay an average £140 compensation to 40,000 customers forced to have pay-as-you-go meters installed. They will pay £5.6million in compensation using guidelines set out by Ofgem. They have also agreed to write off £13million of energy debts from customers who had a prepayment energy meter force-fitted between January 1, 2022, and January 31, 2023. The firms involved are Scottish Power, EDF, Octopus, Utility Warehouse, Good Energy, Tru Energy and Ecotricity. Octopus inherited force-fitting cases when they acquired customers. The firms have agreed to the compensation, ordered by Ofgem after a review. The watchdog's Tim Jarvis said: 'Our priority has been to put things right. "We've made our expectations clear to suppliers on how customers who were treated poorly should be compensated.' Some firms tried to ensure struggling customers paid their bills by forcing their way into their homes to install a meter, often when they were out. Energy Secretary Ed Miliband said of yesterday's ruling: 'Justice is finally being delivered to many of the families, lots of them vulnerable, who were affected by the scandal.' Dhara Vyas, chief of Energy UK, said: 'Suppliers have worked hard to co- operate with this review.' Customers will be contacted by their suppliers and do not need to take action. GOOGLE'S £25BN RAP GOOGLE is facing a £25billion lawsuit in Britain over its 'excessive and unfair prices' in online advertising. Roger Kaye KC, a former deputy High Court judge, has filed a lawsuit arguing that Google uses its dominant position to charge excessive rates. He is seeking compensation for all advertisers who have paid for search advertising since 2011. Mr Kaye says it has affected between 500,000 and 1.5million advertisers. GROCERY INFLATION 2YR HIGH 4 Grocery price inflation is at its highest since February 2023 Credit: Reuters GROCERY price inflation has surged to 4.1 per cent — the highest since February 2023, according to analysts. The figure takes the UK into 'new territory', warned market research company Kantar. Prices rose the fastest for chocolate treats, suncare products, butter and spreads. May's hot weather sent sun cream sales climbing 36 per cent. Other rises included potato salad (up 32 per cent) chilled burgers (27), prepared salads and coleslaw (both 19). Meanwhile, prices fell the fastest for dog and cat food, and household paper products. Fraser McKevitt, from Kantar, said: 'Households have been adapting their buying habits to manage budgets for some time. 'But we typically see changes once inflation tips beyond the three per cent to four per cent point as people notice the impact on their wallets.' He said own-label lines were currently the fastest growing part of the market.
Epoch Times
6 days ago
- Business
- Epoch Times
Thames Water Fined £122.7 Million Amid Financial Crisis and Political Pressure
Thames Water has been hit with a record-breaking £122.7 million fine by the regulator Ofwat for sewage treatment failures and dividend payment breaches. The financial penalty—the largest ever imposed on a water company—comes as the debt-laden utility battles for survival amid calls for nationalisation and concerns over the ultimate cost of the company's financial distress to taxpayers. Ofwat's fine is split into two parts: £104.5 million for sewage treatment failures and £18.2 million for breaching rules on dividend payments. The investigation uncovered that Thames Water paid £37.5 million in interim dividend payments in October 2023 to its holding company, Thames Water Utilities Holdings Limited, and a further £131.3 million in March 2024. David Black, Ofwat's chief executive, called it a 'clear-cut case' in which the company 'has let down its customers and failed to protect the environment.' This marks the first time Ofwat has penalised a company over shareholder payouts. The decision puts Thames Water into 'cash lock up,' requiring it to obtain Ofwat's approval before paying out any further dividends. Related Stories 2/18/2025 4/16/2024 Environment Secretary Steve Reed said on social media platform X that the government has delivered on the promise to clean up Britain's waters, Earlier this year, Thames Water secured the On March 31, it announced that it had selected U.S. private equity firm Kohlberg Kravis Roberts & Co. (KKR) as its preferred bidder to acquire a majority stake in the company. In an update published on its website, Thames Water The deal, however, remains subject to due diligence, regulatory approvals, and final agreement on terms. With the added pressure of new Ofwat fines, the provider's recovery could be even more difficult. The penalties are likely to increase its borrowing costs and impact the company's ability to attract new investment. Special Administration Regime If Thames Water were to become insolvent or unable to provide essential services, it could be placed under the Special Administration Regime (SAR). SAR is a legal safety net used to keep vital utilities running when private companies fail. The regime was last triggered in 2021 when Bulb Energy collapsed during soaring wholesale energy prices. In such cases, the government steps in to fund operations, with the goal of recovering those costs later through restructuring or a sale. At the High Court hearing, Mr. Justice Leech said that if Thames Water's rescue plan wasn't approved, the next likely option would be for the company to enter the SAR. However, after considering the public need for uninterrupted water services, he decided to approve the company's rescue plan instead. Thames Water's Beddington Sewage Treatment Works, near Croydon, south London on March 14, 2025. Ben Stansall/AFP via Getty Images Thames Water Defends Record In response to the penalties, Thames Water said it takes its environmental responsibilities 'very seriously.' The firm added that it has already made progress in addressing issues related to storm overflows. 'The dividends were declared following a consideration of the company's legal and regulatory obligations. Our lenders continue to support our liquidity position and our equity raise process continues,' a Thames Water spokesperson said. Private Equity Bid Despite the company's optimism over KKR's £4 billion proposal, the prospect of a foreign private equity takeover has sparked debate in Westminster. In the House of Lords, Lord Prem Sikka has He pointed out that the company already holds 187 criminal convictions and urged the government to clarify what conditions it would impose on any new owner. 'We need to know precisely what the government will demand,' he told peers. In a separate parliamentary debate, Liberal Democrat MP Luke Taylor noted that more than a quarter of Thames Water customer water bill payments now go toward interest on its debt. 'That is our money paying for the company's mistakes,' he Taylor questioned the decision to allow a foreign private equity firm to take over such a critical public utility and called for sector-wide reform, suggesting the government should work in collaboration with Thames Water to ensure 'good governance.' Referring to KKR's track record with Northumbrian Water—which saw over 40,000 sewage spills in 2024—he asked, 'What will change if it takes over Thames Water?' Calls for Public Ownership Labour MP Bell Ribeiro-Addy rejected the idea of another private takeover altogether, advocating instead for renationalisation. She dismissed arguments in favour of competition as irrelevant in a monopolised sector. 'Which other water company can my constituents switch to when the service is poor?' she asked. As of 2025, What It Means for Customers Thames Water's financial problems and record fine raise big questions for the 16 million people who rely on its services. For now, water and sewage services will continue as normal, even if the company ends up in the SAR. While Ofwat has blocked Thames Water from paying dividends and is watching its finances closely, campaigners argue that these measures are not enough. The think tank Common Wealth 'We don't need the sticking plaster of reactive fines, we need proper surgery: to remove the profit motive from water,' it added.
Khaleej Times
6 days ago
- Business
- Khaleej Times
Top UK water supplier hit with record fine over pollution
Britain's biggest water supplier, Thames Water, was hit Wednesday with a record fine of £122.7 million ($165 million) over pollution and improper dividend payments, a regulator said. UK water watchdog Ofwat said an investigation into "how the company was managing its treatment works and wider wastewater network uncovered failings that have amounted to a significant breach of the company's legal obligations". The penalty is the latest blow to Thames Water, laden with billions of pounds of debt, as it searches for the necessary funding to stave off a costly public bailout. Ofwat said the investigation into Thames Water's network revealed frequent spills of sewage, the true scale of which was likely "much higher than reported". "This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment," said Ofwat chief executive David Black. "Thames Water will now need to correct the issues our investigation has identified," he added. Ofwat stipulated that the fines must be paid by the company and its investors, not by customers. A Thames Water spokesperson said that "we take our responsibility towards the environment very seriously and note that Ofwat acknowledges we have already made progress to address issues raised in the investigation." The water giant will pay £104.5 million for failings over wastewater management and an extra £18.2 million for breaking rules over dividend payments. The company must also now obtain Ofwat approval before paying dividends to shareholders. "Today Ofwat announce the largest fine ever handed to a water company in history," said UK environment minister Steve Reed. "The era of profiting from failure is over. The government is cleaning up our rivers, lakes and seas for good," he added. Last year, Ofwat approved a massive 35 percent hike the average household's Thames water bills over five years. The indebted supplier then won a £3 billion emergency loan from creditors in February, giving it a short-term lifeline as it looks to attract takeover bids. Thames and other British water companies, privatised since 1989, have repeatedly come under fire for allowing the discharge of large quantities of sewage into rivers and the sea. This has been blamed on under-investment in a sewage system that dates back largely to the Victorian era.
Express Tribune
6 days ago
- Business
- Express Tribune
Thames Water fine: UK water supplier hit with record £123m fine by Ofwat for sewage pollution
Thames Water received the largest fine in UK water industry history on Wednesday, after the regulator Ofwat found serious failures in the company's management of wastewater and sewage systems. The £104m environmental penalty is part of a broader £123m sanction that also includes an £18.2m fine for breaching dividend distribution rules. The regulator stated the fines would be paid by the company and its investors, not by customers. 'This decision provides certainty for the company for both its past failures and what we expect from the company to comply with its obligations in future,' said Ofwat chief executive David Black. Ofwat has concluded two investigations into Thames Water, issuing £122.7m in penalties for breaches related to wastewater operations and dividend payments. An enforcement order sets out the required remedial actions. Customers will not bear the — Ofwat (@Ofwat) May 28, 2025 Thames Water's handling of sewage discharges was deemed a significant breach of its legal responsibilities, with Ofwat citing unacceptable impacts on both the environment and the public. The utility also failed to propose a suitable redress package to benefit the environment, prompting Ofwat to escalate its enforcement action. Black added: 'We are clear that dividends must be linked to performance for customers and the environment. We will not stand by when companies pay undeserved dividends to their shareholders.' The company, currently seeking new investors amid mounting financial pressures, is operating under a cash lock-up following a downgrade in its credit rating. That means it cannot distribute funds to shareholders without formal approval until financial conditions improve. Environment Secretary Steve Reed described the move as 'the toughest crackdown on water companies in history'. He noted that 81 criminal investigations had been launched into water companies, stating, 'The era of profiting from failure is over.' James Wallace, chief executive of River Action, called for Thames Water to be placed into special administration. He accused the firm of polluting rivers for nearly 300,000 hours last year while accruing over £22bn in debt and failing to invest in solutions. 'At last, we are seeing a government using the law and punishing a major polluter,' Wallace said. Liberal Democrat MP Tim Farron criticised both Thames Water and Ofwat. 'This should be the final nail in the coffin for Thames Water. It needs to be turned into a public benefit company, and Ofwat needs to be replaced with a real regulator with teeth.' Green MP Ellie Chowns welcomed the fines, saying they represented long-overdue accountability. 'This milestone is only the start. We cannot allow private shareholders to reap vast payouts while communities suffer from raw sewage spills,' she said.
Yahoo
6 days ago
- Business
- Yahoo
Thames Water hit with record £123m fine for sewage failings
Thames Water has been hit with a record £122.7m fine by regulator Ofwat. The penalty has been handed down after the watchdog discovered widespread sewage failures at the struggling utility giant, which was subject to the sector's 'biggest and most complex investigation'. The company has also been punished for breaking dividend rules, as Ofwat found that Thames handed its investors more than £130m in 'undeserved' payments in 2023 and 2024. Of the total fine, £104.5m is related to wastewater failings, while £18.2m is tied to the dividend breach. David Black, Ofwat's chief executive, said: 'This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment. 'Our investigation has uncovered a series of failures by the company to build, maintain and operate adequate infrastructure to meet its obligations. 'This decision provides certainty for the company for both its past failures and what we expect from the company to comply with its obligations in future.' The fine will pile more pressure on Thames as it battles for survival. Chris Weston, Thames Water's chief, last month urged Ofwat not to fine the business, as he told MPs that any form of financial penalty would hinder its turnaround efforts. However, Steve Reed, the Environment Secretary, hailed Ofwat's decision. He said: 'The Government has launched the toughest crackdown on water companies in history. 'The era of profiting from failure is over. The Government is cleaning up our rivers, lakes and seas for good.' A Thames Water spokesman said: 'We take our responsibility towards the environment very seriously and note that Ofwat acknowledges we have already made progress to address issues raised in the investigation relating to storm overflows. 'The dividends were declared following a consideration of the company's legal and regulatory obligations. Our lenders continue to support our liquidity position and our equity raise process continues.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
