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UK water watchdog fines Thames Water with biggest-ever penalty worth £122.7 million
UK biggest water provider Thames Water has been slammed with its biggest penalty ever due to a breach in sewage treatment and payouts.
The UK government's water watchdog, Ofwat, has hit Thames Water with its biggest penalty ever. In a landmark announcement, Ofwat accused Thames Water of breaching rules related to sewage operations and shareholder payouts.
In the official announcement, Ofwat has slapped a fine worth 122.7 million pounds on Thames Water.
"This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment," said Ofwat boss David Black.
Thames Water is the UK's biggest water provider and serves about a quarter of the UK's population, mostly across London and parts of southern England. While this is the company's biggest penalty, it's not the first.
In August 2024, the water company was slapped with a 104 million pound fine. This fine was followed by two additional fines in October and December 2024 worth 56.8 million pounds and 18.2 million pounds, respectively.
The fine worth nearly 123 million pounds from Ofwat comes after its "biggest and most complex investigation."
What did Ofwat find?
The water regulator discovered that Thames Water's sewage treatment plans had a series of failures from the company's end. The statement added that the company had failed to build, maintain and operate adequate infrastructure for sewage treatment.
"Ofwat’s investigation into how the company was managing its treatment works and wider wastewater network uncovered failings that have amounted to a significant breach of the company’s legal obligations, which has caused an unacceptable impact on the environment and customers," the official statement adds further.
In addition to the fines, the UK government also announced 81 criminal investigations into water companies.
“The era of profiting from failure is over. The Government is cleaning up our rivers, lakes and seas for good," said UK Environment Secretary Steve Reed.
How does Thames Water plan to pay?
As per the announcement from Ofwat and Thames, the fines will be paid by the company and its investors. The customers will not be responsible for the payment of fines.
"We take our responsibility towards the environment very seriously," said a spokesperson from the water company while confirming the penalty.
With the case from Ofwat, Thames Water has also been placed in a "cash lockup" and will not be allowed to make any dividend payments without approval from Ofwat.
