Yorkshire Water has been hit with a £40 million redress package after an Ofwat investigation into its wastewater treatment works and sewage networks.
The penalty, which has been reduced from the original £47 million fine, will be paid entirely by the company and its shareholders, not by customers.
An investigation by regulator Ofwat found on average the firm discharged untreated wastewater into the region’s rivers for seven hours a day in 2023, with storm overflows found to be in breach of regulations.
Ofwat’s started investigating Yorkshire Water in 2021, it found the firm had failed to adequately invest in and maintain its networks – and caused an “unacceptable impact” on the environment and customers.
The money will go directly into improving Yorkshire’s waterways, tackling pollution and cutting discharges from storm overflows.
The redress package includes £36.6 million to reduce sewage discharges from storm overflows across Yorkshire between 2025 and 2030. This is on top of the £1.5 billion Yorkshire Water has already pledged to invest in storm overflow improvements over the next five years.
A further £3.4 million will go to the Great Yorkshire Rivers Partnership, allowing it to clear artificial barriers in rivers beyond its existing targets. The extra funding aims to reconnect up to 500km of waterways, improving water quality and biodiversity across the region.
Yorkshire Water has also committed to an action plan ensuring that all of its storm overflows meet legal standards, following concerns over compliance.
Its CEO Nicola Shaw admitted mistakes were made: “We apologise for our past mistakes and hope this redress package goes some way to show our commitment to improving the environment.
“We know there’s still more for us to do. We’re at the forefront of the industry to get this resolved and we’re looking forward to delivering our ambitious plans to improve river health in Yorkshire.”
The penalty follows growing pressure on water companies to clean up pollution after widespread criticism of sewage discharges into rivers and seas.
Ofwat’s ruling sends a clear message that companies must take responsibility for protecting the environment and investing in long-term improvements.
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