The fine comes after two investigations related to the provider’s wastewater operations and dividend payouts.
Thames Water has been fined by Ofwat (Image: Getty)
Thames Water, Britain’s largest water provider, has been fined £122.7million following regulator Ofwat’s “biggest and most complex” investigation. Ofwat said Thames Water would pay £104.5million for wastewater breaches – the largest fine handed out by the watchdog – and a further £18.2million for breaking rules relating to dividend payments.
David Black, chief executive at Ofwat, 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. The company also failed to come up with an acceptable redress package that would have benefited the environment, so we have imposed a significant financial penalty.
DON’T MISS
Powered by
Your Spotify app just got a blockbuster free upgrade – here’s what’s new
Ofwat said Thames Water ‘failed to protect the environment’ (Image: Getty)
“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 company is seeking new buyers to fund its turnaround to provide better services for customers and the environment by improving operational performance and financial resilience.
“This provides a clear opportunity to break with the past, Thames Water will now need to correct the issues our investigation has identified.”
The regulator added the money will be paid by the utility giant and its investors, not by customers.
A Thames Water spokesperson 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.”
Environment Secretary Steve Reed said: “The era of profiting from failure is over. The Government is cleaning up our rivers, lakes and seas for good.”
The wastewater fine was first proposed last year and confirmed on Wednesday.
