Ofwat fines Anglian and South West Water £86.8m for wastewater failings
Regulator says firms failed to operate and maintain treatment works and networks, leading to excessive storm overflow discharges
Ofwat has fined Anglian Water and South West Water a combined £86.8 million after finding both companies breached legal obligations on wastewater management by failing to adequately operate, maintain and upgrade treatment works and networks.
The industry regulator said the shortcomings left the companies unable to cope with sewage and wastewater flows, resulting in excessive discharges from storm overflows. Anglian Water will fund an enforcement package worth £62.8 million and South West Water will pay some £24 million, Ofwat said.
Ofwat said its investigations found insufficient processes and inadequate oversight by senior management and the boards of the two companies to ensure assets met legal requirements. The regulator closed five wastewater investigations so far this year, resulting in enforcement payments of more than £240 million.
The action follows a broader clampdown on water companies: in August 2024 Ofwat issued fines totalling £168 million to Thames Water, Yorkshire Water and Northumbrian Water after an investigation found sewage discharge failures. Ofwat also highlighted figures showing about 450,000 sewage spills in England in 2024, an average of 32 spills per storm overflow monitor.
Lynn Parker, senior director for enforcement at Ofwat, said the breaches were "serious" and "unacceptable," and that the regulator was prioritising a sector-wide investigation to hold wastewater companies to account. "We are pleased both companies have accepted that they got things wrong and are now focusing on putting that right and taking action to come back into compliance," Parker said. "We expect all companies to do the same so that customers can regain confidence in their water company and the critical service they provide."
Ofwat noted that both firms had accepted the findings and would make investments intended to bring their operations into compliance with regulatory requirements. The regulator carried out public consultations on the draft enforcement decisions in July before issuing its final determinations this month.
The fines come amid plans announced in July to overhaul the water-sector regulatory landscape. The government proposed replacing Ofwat with a new regulator that would combine Ofwat's functions with the Drinking Water Inspectorate and the Environment Agency, a move its backers say would streamline oversight of drinking water, wastewater and environmental protection.
Industry and environmental groups have repeatedly pointed to storm overflows and sewage discharges as indicators of systemic underinvestment and operational weaknesses across the sector. Ofwat's enforcement packages are designed both to penalise past failures and to require investment to reduce future spills, the regulator said.
Anglian Water and South West Water did not immediately provide detailed public statements about the fines in the regulator's announcement, but Ofwat said both companies had accepted the outcome and were taking steps to address the breaches. The regulator will monitor implementation of the required improvements and investments.
The decisions follow heightened public and political scrutiny of water companies after consecutive years of recorded sewage spills and a series of high-profile enforcement actions. Ofwat and other regulatory and environmental bodies have said they will maintain focus on whether companies are meeting legal duties to operate assets and to protect the environment.
Ofwat's enforcement figures for the year underscore the scale of regulatory activity: with five closed investigations and more than £240 million in enforcement payments, the watchdog is using financial penalties alongside remedial requirements to pressure water companies to upgrade infrastructure and improve governance. The regulator said it will continue to pursue cases where it finds companies have not met their statutory obligations, and it expects firms across the sector to take corrective action to reduce pollution and restore public confidence.
The fines add to mounting costs and regulatory scrutiny for England's water companies as they balance operational upgrades, investment plans and compliance with tightening expectations from regulators and the public over environmental performance.