Welsh Water has been ordered to pay £44.7 million after a regulatory investigation found serious failures in its sewage network and oversight, leading to excessive spills. Ofwat, the water regulator, announced it had accepted the redress package, which was first proposed in March, following a consultation.
The investigation revealed that the company failed to properly operate, maintain and upgrade its wastewater network, and lacked adequate processes and senior oversight. The package includes £40.6 million to reduce spills at specific overflows and mitigate environmental damage, plus £4.1 million to improve river quality in sensitive catchments.
Ofwat said the package exceeds the £40 million fine that would otherwise have been imposed, and stressed it will be funded by the company, not added to customer bills. Lynn Parker, senior director for enforcement at Ofwat, stated: 'Our investigation found serious and unacceptable breaches... We expect the company to focus on putting things right so that customers can regain trust.'
Welsh Water acknowledged its service had 'fallen short' and said it is investing to improve spills, leaks and water quality. A spokesperson noted a major transformation programme is underway, including better governance and operational oversight. However, customers face further bill hikes, with a 4.8% increase in April taking the average annual bill to £683.
The enforcement action is the latest against a water supplier amid growing criticism of environmental performance. Earlier this week, South West Water received a record fine for supplying unfit water, and Ofwat is investigating South East Water over supply problems.
