Welsh Water has been told it will pay a proposed £44.7m after Ofwat found serious failings in how it managed its sewage network. It is a sizeable sum, and one that the regulator insists will not be passed on to customers.
The case lands at a difficult moment for the water industry, which has faced sustained criticism over pollution and under-investment. According to the BBC, it is the seventh in a sector-wide series of Ofwat investigations into water and wastewater companies across England and Wales, a sign of how widespread the regulator believes the problems to be.
What the Package Covers
Ofwat said the supplier had failed to properly operate, maintain and upgrade its wastewater network so that it could cope with the levels of sewage reaching it. It also lacked adequate processes, the regulator added, and sufficient oversight from senior bosses.
The enforcement package sets aside £40.6m to reduce spills at specific overflows and limit the environmental damage they cause, including work to stop groundwater seeping into the sewer system, a major cause of frequent spills. A further £4.1m is earmarked for improving river quality in what Ofwat described as “extremely sensitive catchments”. The improvements, it said, must be delivered by 2030, with the costs absorbed by the company rather than recovered through bills.
The figure is, notably, larger than a straightforward fine would have been; according to Ofwat, a penalty would have come to £40m. “Our investigation has found serious and unacceptable breaches,” said Lynn Parker, the regulator’s senior director for enforcement, who added that the company must now focus on putting things right. The case is far from isolated. Thames Water, the BBC reported, was fined nearly £123m after two investigations, while other firms face packages of between £11m and nearly £63m.
Anger on the Riverbank, And in the Senedd
For those who swim in the affected rivers, the findings confirmed what they had long suspected. Welsh Water is permitted to discharge into the Wye, the 155-mile river that runs from the Cambrian Mountains down to the Severn Estuary, and which has become a focus of concern over the state of the UK’s waterways.
Angela Jones, a swimmer and campaigner from Ross-on-Wye, described the situation as endless and relentless. She argued that it was, in her words, “cheaper to chuck it in the river and get a fine” than to deal with the problem properly, and said she now drives to Snowdonia to swim. Rhodri Williams of the Consumer Council for Water, meanwhile, said the findings were no surprise to anyone, given years of warnings.
The political response was sharp across the parties. Plaid Cymru said people were fed up with rising bills and worsening pollution, while the Welsh Liberal Democrats said communities were tired of apologies and renewed their call for Ofwat to be replaced. Welsh Water, for its part, accepted the findings and apologised, pointing to a transformation programme already under way. A public consultation runs until 2 April.
