The water regulator is now investigating every wastewater company in England and Wales over fears that some may not be meeting their obligation to minimise pollution.
Ofwat announced it has opened enforcement cases into four more firms as part of its investigation into utilities’ management of wastewater treatment works.
The investigations have been opened following a “detailed analysis” of companies’ environmental performance and how often they spill wastewater from storm overflows.
It was this analysis that “heightened Ofwat’s concerns” that the four utilities may not be fulfilling environmental protection and pollution-minimising obligations.
The firms newly subject to this inspection are Dwr Cymru Welsh Water, Hafren Dyfrdwy, Severn Trent and United Utilities, Ofwat announced on Tuesday morning.
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They join other companies who have been under investigation since 2022 – Anglian Water, Northumbrian Water, South West Water, Thames Water, Wessex Water, and Yorkshire Water. Southern Water is still be monitored by Ofwat following an enforcement case in 2019.
It comes amid increased focus on water companies over pollution and sewage discharges, as well as their own financial health and plans to increase bills.
Analysis of official Department for Environment, Food & Rural Affairs data suggested sewage was dumped into rivers, lakes and beaches designated “safe to bathe in” an average of 86 times a day in 2023, while Environment Agency figures showed untreated sewage discharges doubled from 1.8 million hours in 2022 to a record 3.6 million in 2023.
The UK information commissioner John Edwards wrote to the utility firms in England, Wales and Northern Ireland on Monday asking them to publish information on the number and duration of sewage outflows every month, instead of waiting for members of the public to request information in an effort to build public trust.
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Water firms have been told by the industry regulator they will not be allowed to issue large bill hikes to fund infrastructure investment
‘The largest and most complex investigation’
It means all wastewater companies in England and Wales are subject to enforcement action, a fact that “demonstrates how concerned we are about the sector’s environmental performance”, Ofwat chief executive David Black said.
“This is the largest and most complex investigation Ofwat has undertaken. However, Ofwat is committed to concluding these cases as quickly as possible”, he added.
While there are 14 water providers in England and Wales, just 11 of them are also wastewater companies.
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What next?
Opening an enforcement case does not imply a breach of legal obligations, Ofwat added, and Severn Trent has announced a plan to significantly reduce the use of storm overflows, which the regulator welcomed.
In deciding if any action should be taken against the companies, Ofwat’s investigation will look at firms’ past and present wastewater performance.
Fines can be levied for any regulatory missteps and in recent years penalties of more than £300m have been issued to water and wastewater companies.
United Utilities said in a statement: “We understand and share people’s concerns about the health of the environment and the operation of wastewater systems, including combined sewer overflows.”
Severn Trent said it had “committed to going further and faster than anyone else in the sector” in relation to tackling sewage overflows.
Both firms said they would “work constructively” with Ofwat in its investigation.