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Yahoo
3 days ago
- Business
- Yahoo
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. Disney On Ice set to return to the North East - here's when 'Incredible' response to autism charity's appeal to make County Durham vision real How couple's Croatia holiday sparked vision for 'dream' Darlington micropub 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.
Yahoo
20-03-2025
- Business
- Yahoo
Water firm to pay £40m over 'serious failures'
Yorkshire Water has been ordered to pay £40m to address its "serious failures" over wastewater and sewage. An investigation by regulator Ofwat found that on average the firm discharged untreated wastewater into the region's rivers for seven hours a day in 2023, with almost half its storm overflows found to be in breach of regulations. The cost of the enforcement package would not be passed on to Yorkshire Water's customers and instead it would be paid for by the company and its shareholders, Ofwat said. Yorkshire Water apologised for its failings and said it had taken active steps to remedy the issues, but chief executive Nicola Shaw said there was "still more for us to do". Ofwat's investigation, which began in 2021, found the firm had failed to adequately invest in and maintain its networks. In its conclusion published on Thursday, it said Yorkshire Water had significantly breached its legal obligations, which had caused an "unacceptable impact" on the environment and customers. Ofwat's senior director for enforcement, Lynn Parker, said: "Our investigation has found serious failures in how Yorkshire Water has operated and maintained its sewage works and networks, which has resulted in excessive spills from storm overflows." Ms Parker said Yorkshire Water had recognised this failure and was taking steps to "put it right". "They deserve credit for stepping up and agreeing an enforcement package with us that will help get things back on track as soon as possible," she added. Ofwat said Yorkshire Water had been ordered to pay £36.6m during 2025-30 to prioritise work on some of the most problematic storm overflows in environmentally sensitive areas to ensure they spill less than 20 times a year. It would also be expected to pay £3.4m to the Great Yorkshire Rivers Partnership, which would be used to clear artificial barriers in rivers, improve water quality and promote biodiversity. Yorkshire Water's chief executive, Nicola Shaw, said the firm had already completed work at 70 storm overflows and was due to start a £1.5bn programme to reduce discharges even further over the next five years. She said: "We know there's still more for us to do. "We apologise for our past mistakes and hope this redress package goes some way to show our commitment to improving the environment." A spokesperson for The Great Yorkshire Rivers Partnership said: "We welcome the additional funding. "By reinvesting this money in Yorkshire, even more projects will be delivered by Great Yorkshire Rivers partners across the county to support the recovery of our native fish species." Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North. Yorkshire Water facing £47m fine over sewage leaks Yorkshire Water Ofwat
Yahoo
12-02-2025
- Business
- Yahoo
New blow for Thames Water as watch-dog threatens huge fines over environmental failings
Embattled Thames Water was hit by a fresh blow today after it was told by its regulator it faces the threat of multi-million pound fines after it had failed to complete more than 100 environmental protection projects. Ofwat said it is opening an investigation into whether London's water supplier is in breach of its legal obligations through the 'delayed delivery of environmental improvement schemes' that customers have already paid for through their bills. The investigation marks the start of an enforcement action that could lead to a fine up to 10% of the turnover of the relevant subsidiary of the Thames Water group, which serves 16 million people in the capital and parts of southern England. It comes as the utility waits to hear from a judge whether Thames Water can press ahead with a proposed £3 billion financial restructuring that will save it from a temporary renationalisation. Thames has more than £16 billion of debt. Thames Water committed to deliver 812 environmental schemes as part of the Water Industry National Environmental Programme (WINEP) from 2020 to 2025. These were to improve the quality of water in the Thames and other rivers and water courses in its catchment area such as the Pang and the Mole, and to prevent sewage flooding. Ofwat said: 'Completing these environmental schemes on time is essential for companies to ensure that they are compliant with statutory requirements. However the regulator said that 'Thames Water alerted Ofwat and the Environment Agency that it will be unlikely to deliver more than 100 of these environmental improvement schemes on time, by 31 March 2025.' Lynn Parker, senior director for enforcement at Ofwat, said: "Customers have paid for Thames Water to carry out these essential environmental schemes. We take any indication that water companies are not meeting their legal obligations very seriously. 'Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations. If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right." A Thames Water spokesperson said: 'We note Ofwat's decision to open an enforcement case into the delayed delivery of WINEP7 and will cooperate fully. Customers will not pay twice for investment that has already been funded through customer bills. 'We've been very open about the challenges of delivering all the elements of our WINEP 7 programme, which has been impacted by cost increases that are higher than the inflation index applied to our allowances. We informed Ofwat of this in August 2023. We remain committed to delivering all our WINEP commitments.' Thames Water is locked in a dispute with Ofwat about how much it can put up bills over the next five year period. The regulator has said they can only rise by 35%, in today's money, while the company has asked for a 53% increase. Thames Water must decide within days whether to formally appeal to the Competition and Markets Authority. Sign in to access your portfolio
The Guardian
12-02-2025
- Business
- The Guardian
Regulator investigates Thames Water over delayed environmental schemes
Thames Water is being investigated by the water regulator for England and Wales, Ofwat, after it delayed environmental improvement schemes. The investigation comes after the Guardian revealed that the UK's largest water company intentionally diverted millions of pounds pledged for environmental clean-ups towards other costs, including bonuses and dividends. Ofwat has opened an enforcement case into the company to decide whether it has breached its obligations in failing to deliver 100 out of 812 schemes it was supposed to put in place between 2020 and 2025. These environmental measures are part of the Water Industry National Environmental Programme (WINEP) and they include protecting and enhancing rivers, upgrading sewage systems to reduce spills, reducing the amount of water abstracted from rivers and improving the safety and quality of designated bathing sites. Water companies have to deliver these on time as part of their statutory requirements with the regulator; failing to do so means enforcement action can be taken including fines. The WINEP deal is a condition for water companies being able to increase bills. Lynn Parker, the senior director for enforcement at Ofwat, said: 'Customers have paid for Thames Water to carry out these essential environmental schemes. We take any indication that water companies are not meeting their legal obligations very seriously. Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations. If we find reason to act, we will use our full range of powers to hold Thames to account for any failures and will require them to put things right.' Consumer groups are concerned the failure to deliver environmental schemes, which are supposed to be paid for with funds from water bills, means that people in the Thames area will have to pay twice. Thames has been mired in problems for months. The company faces serious financial issues and is heavily indebted, with speculation rife over whether it can survive in its current form or whether it may eventually have to be renationalised. Matthew Topham, the lead campaigner at We Own It, said: 'To protect the interests of shareholder and creditors, the board have put the safety of Londoners and Thames Valley residents, and our environment, at risk. It's official privatised water can only continue to function by cheating the public. 'We should not have to pay again for infrastructure we have already paid for. Ofwat must cancel its bill rise at Thames and ask ministers to bring the firm into public ownership so it works for people, not profit.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Thames Water denied anyone will have to pay twice and said that the company remains committed to its environmental pledges. In its response to the Guardian's report in December, Thames said sharp increases in its costs such as energy and chemicals – which it claims went beyond standard measures of inflation – lay behind its decisions to delay the works. A Thames Water spokesperson said: 'We note Ofwat's decision to open an enforcement case into the delayed delivery of WINEP7 and will cooperate fully. Customers will not pay twice for investment that has already been funded through customer bills. We've been very open about the challenges of delivering all the elements of our WINEP 7 programme, which has been impacted by cost increases that are higher than the inflation index applied to our allowances. We informed Ofwat of this in August 2023. We remain committed to delivering all our WINEP commitments.'
Reuters
12-02-2025
- Business
- Reuters
UK's Ofwat to investigate Thames Water over environmental delays
LONDON, Feb 12 (Reuters) - British water regulator Ofwat said it would investigate Thames Water over delays to hundreds of environmental improvements to determine whether the struggling utility had breached its obligations which could result in fines. The regulator said Thames Water had committed to deliver 812 environmental improvement schemes over the 2020-2025 period but had informed it recently that it would be unlikely to deliver more than 100 of them on time. It said on Wednesday it would open an enforcement case, which could result in the company being fined millions of pounds if it is found at fault. Thames, the country's biggest water supplier, which has 18 billion pounds ($22.4 billion) of debt, is waiting for a court to approve a debt lifeline in the coming days, without which it has warned it will run out of cash by the end of March. It is at the centre of a public backlash against Britain's failing water sector, blamed for polluting rivers and seas with sewage, amid accusations that profit has been prioritised over the environment. "Customers have paid for Thames Water to carry out these essential environmental schemes," Ofwat senior director Lynn Parker said. "We take any indication that water companies are not meeting their legal obligations very seriously." Ofwat added that the opening of a case did not imply that the company had breached its obligations and it would publish its findings after completing an investigation. Last August, Ofwat proposed fining Thames Water 104 million pounds for failing to manage its wastewater and treatment works following a previous enforcement case. ($1 = 0.8035 pounds)
