Latest news with #NorthumbrianWater
BBC News
2 days ago
- Business
- BBC News
Northumbrian Water to pay £15.7m over network failings
Northumbrian Water has agreed to pay out £15.7m after failures in the maintenance and operations of its sewage and water sector regulator Ofwat said the firm would pay out the "enforcement package" to local environmental causes and improvements to the region's water company's failures led to "excessive spills from storm overflows", the watchdog comes a week after Thames Water was fined a record £122.7m having broken rules over sewage treatment and paying out dividends. Ofwat said the enforcement package for Northumbrian Water was "greater than the penalty which would otherwise have been imposed" if it had fined the also said the package agreed with the company meant it would be spent on local improvements for customers, rather than being directed to the Treasury's consolidated fund. 'Unacceptable' impact Northumbrian Water chief executive Heidi Mottram 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."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."She added Ofwat now expected the water company "to move at pace to correct the issues our investigation has identified".Northumbrian Water said in December last year it planned to increase its average water bills by around 21% over the next five years. Follow BBC North East on X, Facebook, Nextdoor and Instagram.
The Independent
2 days ago
- Business
- The Independent
Northumbrian Water to pay out £15.7m after sewage and water network failings
Northumbrian Water has agreed to pay out £15.7 million after failures in the maintenance and operations of its sewage and water network. Water sector regulator Ofwat said the firm will pay out the 'enforcement package' to local environmental causes and improvements to the region's water infrastructure. Bosses at the watchdog said its failures led to 'excessive spills from storm overflows'. It comes a week after Thames Water was fined a record £122.7 million after it was found to have broken rules over sewage treatment and paying out dividends. Ofwat said the enforcement package is 'greater than the penalty which would otherwise have been imposed' if it had fined the business. It also said the package agreed with the company means it will be spent on local improvements for customers, rather than being directed to the Treasury's consolidated fund. Northumbrian Water chief executive Heidi Mottram 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.' 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.' Northumbrian Water said in December last year that it plans to increase its average water bills by around 21% over the next five years.
The Independent
3 days ago
- Business
- The Independent
If the government wants to save Thames Water, it's going to need to get its hands dirty
The latest twist in the perma-crisis that is Thames Water came courtesy of the withdrawal of KKR from a rescue plan that now lies in tatters. The US private equity firm would have overseen a much needed £4bn recapitalisation of the debt ridden company, likely involving some of the existing lenders. Consumers may well have looked askance. KKR already has a substantial stake in Northumbrian Water which has itself faced plenty of controversy – and fines – over sewage spills and overcharging and the other sins common to this industry. But at least it wasn't looking to renegotiate their bills, which are already due to rise by more than a third over the next five years. The FT reported that it was hoping to reduce the vast fines faced by the firm – and the obvious problem with that is the message it sends to an industry that has done a rotten job. But it actually made some sort of sense given the company's financial difficulties, so long as strings were attached. The problem with fines like the record £123m penalty imposed on Thames last week is that they will ultimately reduce the resources available to fix its problems (the money typically goes to the Treasury). The decision by KKR, which has made no public comment, comes after weeks of extensive due diligence. Ultimately, the firm appears to have been defeated by both the complexity of the situation and the multiple competing stakeholders involved. Regulators, politicians and, not to put too fine a point on it, some very unhappy consumers who are understandably fed up with the regular sewage spills and the leaks they see going untreated on hot summer days when hose pipe bans are in force. Thames is a distressed asset. If you can get in at a favourable rate and fix it, then (amazing though it may seem) there is the prospect of a handy return. Trouble is, fixing Thames looks like a Sisyphean task even without the multiple cooks stirring the pot. Small wonder that customers are angry, and can't understand how Thames managed to pay dividends and bonuses while they were being told that the thing was teetering on the brink and that they would have to pay (much) more for a shabby service. It scarcely seems possible, but the water industry has somehow contrived to make a dysfunctional domestic energy market, and the companies operating within it, look good. Partly that's down to OfWat, which received its latest kicking courtesy of Independent Water Commission (IWC), led by a former deputy governor of the Bank of England. It has somehow contrived to make energy regulator OfGem look good. The IWC, however, also fired a volley at the political oversight of the sector. It called for a 'fundamental reset' identifying five key areas in need of a shake up ranging from strategy, to regulation, to ownership. Thing is, this is not rocket science. The problems have been staring us in the face for years. I've been writing about them for years. It is a terrible indictment of OfWat, and its political masters, that they have only gotten worse over time. The trouble is, of course, that the dysfunctional water industry is a political hot potato no one wants to grasp. The current administration is falling into the same trap that its predecessors fell into on that front. Steve Reed, the environment secretary, actually had the gall to claim, in an interview with LBC, that 'Thames remains stable'. Mr Reed was obviously seeking to reassure people that they will still be able to turn the taps on and have access to clean water for cooking, cleaning and drinking. However, to describe Thames as 'stable' is shockingly complacent. The preferred bidder has done a runner. Bosses are now scrambling to find a replacement from among the previous bidders, bondholders, hell anyone willing to take on this sow's ear of business, which is making a stellar contribution to the sense of national rot that helps to explains the rise of populists like Nigel Farage. It is often argued that nationalisation would not necessarily deliver a better outcome for the consumer, despite the consistently strong support among the public found by pollsters. And it is true that it would be dangerous to see it as a panacea. I suspect that a temporary spell in public ownership looks like the most likely end game to this sorry saga. But this is not a problem that can be solely fixed by the market, as this latest episode proves. Mr Reed needs to get a grip. So does Rachel Reeves, who is closely involved in this, given the borrowings Thames has. Keir Starmer, too. The current game of pass the buck isn't doing anyone any favours – and there is a real risk that we'll be here again in short order, even in the event that a private sector solution is somehow found. The government needs to accept that it is going to have to get its hands dirty to clean up the water industry. The IWC's interim report would be a good place to start. But Thames requires more immediate action.
BBC News
3 days ago
- General
- BBC News
Wastewater 'likely cause' of Seaburn dene stream pollution
Wastewater from a "plumbing misconnection" was the likely cause of a stream pollution, an investigation has Agency (EA) officers examined the stream at Cut Throat Dene, in Seaburn, Sunderland, after reports of pollution and a local vet's warning that dogs being walked in the area were getting sick. An EA spokesperson said its probe had found the issue was likely to have been due to a "plumbing misconnection" which was discharging wastewater, and it had told Northumbrian Water to investigate. The water company said it had fixed the problem "straight away". The EA's investigation took place about two weeks ago. Roker Park Vets put out a warning to pet owners after "a noticeable increase" in cases of dogs being brought to the practice with vomiting and diarrhoea.A spokesperson for Northumbrian Water said: "We investigated and found the cause of the problem to be a combined sewer some miles away. "As soon as we realised the issue we fixed it straight away."The EA said it had also asked the water firm to take steps to prevent a reoccurrence. Follow BBC Sunderland on X, Facebook, Nextdoor and Instagram.
BBC News
26-05-2025
- Climate
- BBC News
Washington street floods after water main bursts
Part of a street was flooded after a water main pipe was damaged on Ellen Terrace in Washington, near Sunderland, on Sunday and repairs were carried out during the Water said its initial work was finished at about 03.30 BST and supply was not due to the damage, a full clean-up of the area is expected to continue throughout the week. Northumbrian Water said it hoped the road would partially reopen 12 inch (30cm) pipe burst on Sunday.A spokesperson said: "Due to the damage caused by the burst pipe, work will continue during the week to carry out a full clean-up." Follow BBC Sunderland on X, Facebook, Nextdoor and Instagram.
