Ofwat Investigates Severn Trent and Three Other Water Companies Following Criticism Over Bill Increases
The water regulator, Ofwat, is initiating cases against four additional water companies, including Severn Trent and United Utilities. This action means every wastewater company in England and Wales is now under investigation for sewage spills.
Ofwat has issued formal notices to Dŵr Cymru Welsh Water, Hafren Dyfrdwy, Severn Trent, and United Utilities, requiring them to provide evidence for its investigation into their wastewater management practices in England and Wales.
The regulator’s scrutiny of these companies’ environmental performance and data on storm overflow spills has heightened concerns that they may not be meeting their obligations to protect the environment and minimize pollution.
As a result, Ofwat is now taking enforcement action against all 11 water and wastewater companies in England and Wales for sewage pollution. The regulator will publish its findings and take appropriate action for any legal breaches once its investigations are complete.
Investigations into Anglian Water, Northumbrian Water, South West Water, Thames Water, Wessex Water, and Yorkshire Water began two years ago and are still ongoing. Southern Water remains under enforcement monitoring after a record £126m fine in 2019 for severe failures at its sewage treatment sites, which polluted rivers and beaches in southern England.
In collaboration with the Environment Agency, Ofwat is examining widespread illegal sewage discharges across the network from thousands of treatment plants. These investigations have been ongoing for more than two years, with no findings released to date.
In March, analysis of recent data revealed that over 2,000 overflows owned by various companies are discharging raw sewage into rivers and seas.
David Black, the chief executive of Ofwat, stated: “The fact that Ofwat now has enforcement cases with all 11 of the wastewater companies in England and Wales demonstrates how concerned we are about the sector’s environmental performance. Where we find that companies have breached their obligations, we will continue to act – over recent years, we have imposed penalties and payments of over £300m on water and wastewater companies.”
Black emphasized that this is the largest and most complex investigation Ofwat has undertaken. Ofwat aims to conclude these cases swiftly so that the sector can focus on delivering the £88bn expenditure from the 2024 price review, which aims to achieve cleaner rivers and seas. Part of this investment includes £10bn earmarked to address storm overflows, with a target to reduce spills by 44%.
Severn Trent recently announced a program to significantly reduce the use of storm overflow, which Ofwat welcomed.
Last week, Ofwat faced criticism for allowing water companies to increase bills by an average of 21%, or £94, over five years to fund environmental improvements. This decision came at a time when customers have experienced poor service, sewage dumping, and leaks, described as a “bitter pill” by the new chancellor, Rachel Reeves.
Clean water campaigners, including former Undertones singer Feargal Sharkey, argue that customers are effectively paying twice and should not bear the cost of infrastructure investments that should have already been made to comply with operational permits.
Severn Trent and United Utilities stated they would work “constructively” with Ofwat.
