Ofwat proposes £47 million fine for Yorkshire Water

The regulator proposed the fine for Yorkshire Water, as well as a  £104 million penalty for Thames Water and £17 million for Northumbrian Water, as the first batch of results from its biggest ever investigation into the industry.

The penalties relate to water firms' management of their wastewater treatment and sewer systems, which have come under heavy criticism for releasing too much pollution into rivers.

In an announcement this morning, Ofwat said the firms "failed to ensure that discharges of untreated wastewater from storm overflows occur only in exceptional circumstances, which has resulted in harm to the environment and their customers".

It added that there was a "strong correlation" between high spill levels and operational issues at their wastewater treatment sites, "which points to these companies not having properly operated and maintained their wastewater treatment works".

It said the firms had failed to upgrade their assets where necessary, and had been slow to grasp their obligations to limit pollution from storm overflows.

Yorkshire Water told the Telegraph & Argus it was "disappointed" with Ofwat's response and said it takes its "responsibility to protect the environment very seriously".

The company, which is based in Bradford, said it had "already taken considerable action to improve" river health.

Ofwat 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.

"Looking to the future, we want transform companies' performance under our new price control that starts in April next year, so we reduce spills from sewage overflows by 44 per cent by 2030 compared to 2021 levels."

A Yorkshire Water spokesperson said: "We take our responsibility to protect the environment very seriously.

"Last year, we apologised for not acting quickly enough and announced our £180m programme to reduce discharges from our storm overflows before April 2025.

"We are disappointed with Ofwat's response to their investigation into our wastewater treatment networks.

"Since the start of this process in November 2021, we have cooperated fully with the investigation and we will continue to seek clarity on their Draft Penalty and Enforcement notice. We will be responding to the notice by September 10.

"We and our customers care deeply about river health and we want to provide reassurance that we have already taken considerable action to improve.

"For the past two years we have been industry leading for our wastewater treatment works compliance. 

"We have more robust processes and procedures in place, and we have finished work at 10 storm overflows with 44 on site as part of our £180m investment programme.

"Our business plan for 2025-2030 is currently being reviewed by Ofwat which is proposing our largest environmental investment of £7.8 billion."

Environment Secretary Steve Reed welcomed the proposed fines.

Environment Secretary Steve Reed (Image: PA)

"The unacceptable destruction of our waterways should never have been allowed - and it is right that those responsible for illegally polluting our rivers, lakes and seas face the consequences," he said.

"This Government will fundamentally reform the water sector.

"We have announced our first steps to clean up the water industry in our Water (Special Measures) Bill, to cut sewage pollution, protect customers and attract investment to upgrade its crumbling infrastructure.

"We will outline further legislation to transform and reset our water industry and restore our rivers, lakes and seas to good health."