Thames Water has been hit with a £122.9 million fine after the regulator found serious failings in how the company reported data and managed its sewage treatment works.
Following two major investigations, Ofwat concluded that between 2017 and 2021, Thames Water misreported critical performance data and failed to operate a significant number of its sewage treatment sites properly.
The result was an inflated picture of its environmental performance and reliability, at a time when the sector is under increasing pressure to clean up its act.
The regulator said that some sites were operating well below required standards, with “large volumes of sewage” not being properly treated before being discharged.
Ofwat found the company breached its licence by failing to maintain equipment, adequately monitor treatment works and provide accurate data on performance.
Thames Water has accepted the findings and agreed not to appeal, meaning the financial penalty will be returned to customers through lower bills from next year.
The fine includes £101 million for the sewage treatment failings and a further £21.9 million for misreporting performance, making it one of the largest penalties ever issued by Ofwat.
David Black, Ofwat Chief Executive, said the findings show “a shocking failure of accountability and oversight.”
Thames Water has let down its customers and the environment. It must do better.”
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The news comes as the company continues to face major scrutiny over its financial health, with recent reports raising doubts about its long-term viability.
Thames Water is currently in the midst of a turnaround plan, with new leadership and pledges to invest more in fixing leaks and upgrading infrastructure.
Ofwat said it will closely monitor Thames Water’s performance going forward and will not hesitate to take further enforcement action if needed.
This latest penalty follows a wider crackdown across the water sector, with growing anger from the public and politicians about persistent pollution and lack of investment.
The fine will serve as a stark warning to other water companies that poor performance and data manipulation will be met with serious consequences.
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