ESG Enforcement Tracker

Welsh Water will pay £44.7 million following an Ofwat investigation that found “serious and unacceptable” breaches in Welsh Water’s sewage and network services. It was found that the supplier failed to properly operate and maintain its sewage and wastewater networks. The regulator concluded that Welsh Water did not adequately upgrade or manage its infrastructure to cope with sewage and wastewater levels and that senior oversight was insufficient. The case is the seventh in a wider series of Ofwat investigations covering all water and wastewater companies in England and Wales.

Ofwat has stressed that the enforcement package is intended to amount to more than a fine and is intended to deliver direct environmental benefits. Around £40.6 million is intended to be used to reduce sewage spills at specific overflows. The company will also investigate and carry out sealing works on private parts of the sewer network to tackle groundwater infiltration, which is a significant contributor to frequently spilling overflows. A further £4.1 million will be directed at improving river quality and biodiversity. Ofwat has said these improvements must be delivered by 2030 and that the costs will be absorbed by the company, not passed on to customers through higher bills.

Welsh Water accepted the findings and apologised for falling short of the standards expected by consumers. It stated it had begun a major transformation programme focused on improving wastewater performance, strengthening oversight and accelerating investment to protect rivers and coastal waters. A consultation on the proposal was closed on 2 April and has now been confirmed by Ofwat’s final decision. 

This represents the seventh case in a series of Ofwat investigations into water and wastewater companies in England and Wales.