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3 Water Firms Face £168m In Fines For Sewage Pollution
Following the biggest ever investigation into sewage pollution in the UK, industry regulator Ofwat has put forth proposed penalties for three water companies – Thames Water, Yorkshire Water and Northumbrian Water – to be fined a combined total of £168 million for management failures in relation to their networks and wastewater treatment works.
A big cause for concern is the suppliers’ use of storm overflows, which are designed to release water only in exceptional circumstances, such as during periods of intense rainfall, in order to prevent overwhelming the sewerage system and stopping sewage from backing up into homes and businesses.
The investigation revealed that all three suppliers have failed to ensure that untreated wastewater discharges from these combined sewer overflows only take place in exceptional circumstances, the result of which has been harm to both the environment and the customers they serve.
Furthermore, a strong correlation between high spill levels and operational issues at treatment plants has been found, indicating that the companies are not following proper operational procedures or carrying out the appropriate maintenance as required.
The investigation revealed that assets hadn’t been upgraded where necessary to ensure that the changing needs of the local communities were met.
Suppliers were also found to have been slow to understand their obligations to limit storm overflow pollution, failing to put in place the requisite information, processes and oversight that would allow them to comply fully with those requirements.
Off the back of this, proposed penalties will see Northumbrian Water fined £17 million, Yorkshire Water fined £47 million and Thames Water fined £104 million.
Suppliers will not be permitted to recover the money from these penalties from bill payers, with Ofwat ensuring that customers will also not be charged twice if additional maintenance work is required.
Commenting on the findings, chief executive David Black said: ““Ofwat has uncovered a catalogue of failure by Thames Water, Yorkshire Water and Northumbrian Water in how they ran their sewage works and this resulted in excessive spills from storm overflows.
“Our investigation has shown how they routinely released sewage into our rivers and seas, rather than ensuring that this only happens in exceptional circumstances as the law intends.
“The level of penalties we intend to impose signals both the severity of the failings and our determination to take action to ensure water companies do more to deliver cleaner rivers and seas.
“These companies need to move at pace to put things right and meet their obligations to protect customers and the environment. They also need to transform how they look after the environment and to focus on doing better in the future.”
The nation’s sewage problem
Over the last few years, the issue of sewage spills in England’s waterways has become a seriously hot topic, hitting the headlines with increasing regularity as time goes on.
In March this year, Environment Agency figures were published showing that sewage spills by water companies in the nation’s rivers and seas doubled in 2023, with 3.6 million hours of spills seen compared to the 1.75 million that were recorded the year before.
In response to rising public anger over the matter, water companies in England and Wales did issue an apology for the amount of untreated water being discharged into waterways, with £10 billion pledged to help address these spills and reduce levels by 44 per cent compared to 2021.
Ofwat has also proposed a spending package by water companies of £88 billion, £35 billion of which reflects the investment required to reduce pollution, improve river and bathing water quality, improve customer service and ensure that the network is made more resilient to the impacts of climate change.
However, while the cost of this investment wave will initially be funded either through borrowing or from shareholders, the costs will later be recouped through customer bills over a five-year period and beyond, with a proposed rate of return of 3.72 per cent.
As such, the average bill increase will be £19 a year over five years, totalling £94 overall, excluding inflation.
What else is being done?
To help tackle the growing problem, the Environment Agency recently announced that £180 million of fast-tracked investment would be provided over the next year or so to prevent over 8,000 such sewage spills from causing further pollution of waterways.
Measures will include new AI systems to manage storm loads, in-sewer monitor installations to check flows and identify blockages early on, accelerated wetland construction programmes and the recruitment and training of specialist staff.
And back in March, a new portal was launched to help make it easier for internal whistleblowers to bring serious environmental wrongdoings on the part of their water companies to light.
Any incoming reports will be assessed by the Environment Agency’s intelligence teams, with any findings used to support enforcement action, including unlimited financial penalties and criminal prosecution.
How can businesses help?
While one of the biggest problems facing the nation’s waterways is, undoubtedly, these sewage spills, everyone has their own part to play in protecting water quality and shoring up supplies for future generations.
Reducing reliance on mains water is one way to alleviate pressure on the network through measures such as rainwater harvesting, automated meter reading and water leak detection and repair.
Businesses can also help by raising awareness among their employees and client base of what can and can’t be sent down the drains, helping to prevent pollution from other sources.
If you’d like to find out more about how best to go about improving the water footprint of your business, get in touch with the H2o Building Services team today.