Water regulator Ofwat has put forward a substantial financial penalty for Wessex Water, proposing the company must pay £11 million for significant failures in operating and maintaining its wastewater infrastructure.
Investigation Uncovers Network Failures
The enforcement action, announced on Tuesday, follows an investigation which found the company did not adequately maintain its network to handle sewage and wastewater flows. This led to spills from storm overflows occurring when they should not have.
Ofwat has made it explicitly clear that the £11 million cost of this package must be borne by Wessex Water and its shareholders. The company cannot recover the money from its customers or through increases to their bills.
This ruling is particularly notable given that Wessex Water, owned by Malaysian firm YTL, recently increased customer water bills by an average of 20%, or £113, this year.
Proactive Steps and Required Actions
Lynn Parker, Ofwat's senior director for enforcement, acknowledged that Wessex Water has been one of the more proactive companies in investigating and fixing the identified problems. However, she stressed that breaches remain which must be accounted for and corrected.
As part of the enforcement plans, Wessex Water is now required to undertake several specific actions. These include helping local landowners seal sewer pipes to prevent unnecessary groundwater from entering the network.
The company must also reduce spills at specific storm overflows through targeted investment and install additional monitoring equipment to better track performance.
Part of a Wider Regulatory Crackdown
This case against Wessex Water is not an isolated incident. It forms part of a broader regulatory crackdown on the water industry. Earlier this year, similar investigations into companies including Yorkshire Water, Thames Water, and South West Water resulted in enforcement actions totalling around £240 million.
Ofwat has been contacted for further comment on the specifics of the Wessex Water case.
