Latest news with #waterregulator
Bloomberg
12-08-2025
- Business
- Bloomberg
UK Lines Up Administrator for Thames Water in Case of Collapse
The UK government appointed FTI Consulting to advise on the special administration process in case it's needed, as it intensifies preparations for the potential failure of Thames Water, according to a person familiar with the matter, who spoke on the condition of anonymity. The creditors of Thames are locked in talks with the water regulator over potential concessions for the company while it focuses on turning around its operations and finances. Should a private rescue process fail, Thames Water could fall into a special administration regime, a temporary state-supervised process akin to insolvency for bankrupt businesses that provide critical services.
The Sun
19-07-2025
- Business
- The Sun
Fat cat water regulator bosses get millions of pounds in salaries while failing to get a grip on the sewage crisis
GREEDY water regulator bosses paid themselves millions in salaries while failing to get a grip on the sewage crisis. Ofwat's senior management team netted more than £2 million in pay last year. 2 Chief exec David Black received a total remuneration package of £250,000 to £255,000 including pension. The failing regulator also handed out over £6 million to external consultants in two years, according to official contracts. It comes as Ofwat is set to be abolished under reforms announced on Monday. The useless watchdog has been blasted for failing to stop water companies spewing sewage into waterways while lining the pockets of their shareholders. Now it can be revealed the regulator has been spaffing taxpayer cash on companies for communication advice and training staff for grillings by MPs. A £15,000 contract was given to Moxy Communications for advice including 'training for Select Committees'. This is despite Ofwat having around 16 people on their comms team with salaries for their senior director advertised at around £105,000. Recently, advisors Strand Partners won a £100,000 seven-month contract to 'reduce the pressure on Ofwat and free up resource'. 2 A separate £30,000 contract was spent on an online tool to schedule content to go live on Ofwat social media channels. And another £80,000 went on a 'social listening tool' to 'gain valuable insights' from social and digital media. Senior Lib Dem MP Tim Farron said: 'It is shocking that Ofwat bosses have the audacity to award themselves millions for failure, and this unnecessary spending is an insult to every single bill payer who sees their charges rocket, while the state of our waterways plummets. 'This isn't just incompetence; it's a betrayal of public trust and we need a radical overhaul. 'It's time to pull the plug on Ofwat. We need a powerful, new regulator that can finally force these companies to clean up their act and stop the sewage scandal for good.' Tory shadow environment secretary Victoria Atkins said: 'As families watch bills rise by the month, Ofwat bosses are busy signing off million-pound consultancy contracts and paying themselves bumper salaries. "Spending £80,000 to listen to tweets and £15,000 on Select Committee coaching is a slap in the face to every household footing the bill.' For the first time the Government will promise to cut sewage pollution with a clear deadline. Environment Secretary Steve Reed has announced that pollution from water companies will be cut in half by the end of the decade. And a record £104 billion is being invested to upgrade crumbling pipes and build new sewage treatment works. He said: 'One of the largest infrastructure projects in England's history will clean up our rivers, lakes and seas for good.' He is expected to announce a consultation on creating a new regulator to coincide with the results of a major review into the water industry directed by former Bank of England deputy governor Sir Jon Cunliffe. An Ofwat spokesperson said Mr Black's salary takes account of the 'scale, complexity and challenges of the role'. They added: 'Decisions on pay and bonuses for the Senior Leadership Team are made by the Board's People Committee in line with guidance from the Cabinet Office and the Senior Salaries Review Body. The process and the salary increase applied was in accordance with the Government pay guidance for Senior Civil Servants.'
Sky News
10-07-2025
- Business
- Sky News
South West Water agrees to pay £24m for wastewater failures
Why you can trust Sky News South West Water has agreed to pay a £24m penalty for wastewater spillages, the water regulator said. The company, serving 1.8 million customers in the South West part of England, failed to meet its legal obligations in managing the wastewater treatment works and network, Ofwat said. South West Water did not have adequate management systems to ensure those legal obligations were met, including adequate oversight from its senior management team and board of directors, the regulator added. As a result of the failures, the company spilt wastewater when it should not have. Some customers of the company were subject to a boil water notice in May last year, which remained in place for eight weeks, with roughly 17,000 households told to boil their water before drinking. 1:28 The utility was said to be the worst offender for sewage discharge into shellfish waters, responsible for 13,000 sewage discharges, totalling 98,000 hours. Where's the money going? But rather than being fined, the £24m is a penalty, with the sum going towards investment in the water system. Investment of £20m will target sewage and wastewater flows in "environmentally sensitive areas" or within focused community areas, Ofwat said. A further £2m will establish a local fund to tackle sewer misuse and misconnections, which can contribute to pollution, and the final £2m will go towards a nature recovery fund for the area. If the payment had not been agreed, a penalty would have been applied, and the money would have gone to the Treasury. The £24m investment package secured is larger than the penalty would have been, Ofwat said. It would have been £19m, 6.5% of South West Water's annual turnover, the watchdog added. A consultation is now open to the public to offer comments on Ofwat's decision before it is finalised.
Bloomberg
06-06-2025
- Business
- Bloomberg
Bonus Blockage
Morning, I'm Louise Moon The water regulator Ofwat has shown its (much questioned) muscle and banned six companies from paying bonuses as it cracks down on sewage pollution.
Reuters
28-05-2025
- Business
- Reuters
UK regulator fines Thames Water a record $165 mln for legal breaches
LONDON, May 28 (Reuters) - Britain's water regulator Ofwat imposed a higher-than-expected 122.7 million pounds ($165.36 million) fine on Thames Water, saying on Wednesday that the utility had significantly breached its legal obligations. The watchdog, which was earlier considering a 104.5-million-pound penalty on Thames, said its final amount was the largest fine it had ever issued and that the company's failures had caused "an unacceptable impact on the environment and customers". It also issued an enforcement order which would require the company, Britain's biggest water supplier with 16 million customers, to take steps to ensure its future compliance. "This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment," Ofwat boss David Black said in the statement. The company, which has been struggling with billions of pounds of debt, secured a 3 billion pound loan in February to stave off financial collapse. On Wednesday, Ofwat said the company was seeking new buyers to fund its turnaround. In a separate statement, Thames Water said its lenders continued to support its liquidity position and that its equity raise process was continuing. "We take our responsibility towards the environment very seriously," it said. ($1 = 0.7419 pounds)
