Enforcement action of £24m for water firm failures

A £24m enforcement package for South West Water (SWW) has been proposed after a three-year investigation into its failures in managing wastewater treatment works and sewer networks.

The Water Services Regulation Authority (Ofwat) said SWW had "recognised its failures" including failing to build and operate wastewater treatment works and sewer networks and not meeting its legal obligations.

In June, one of SWW's treatment works was the source of pollution that killed thousands of fish in a Cornish river.

SWW said it had proposed the "ringfenced investment programme" to be "funded by the company and shareholders and not our customers".

The enforcement package will see £20m invested from 2025 to 2030 to reduce spills from specific storm overflows, the creation of a £2m local fund to tackle sewer misuse and misconnections and £2m to support environmental groups to deliver local improvements.

Ofwat said SWW has avoided being fined up to £19m by proposing the enforcement package.

In January, the company announced plans to almost double its investment in the environment to £2.5bn between 2025 and 2030.

SWW CEO Susan Davy said it would take the necessary steps to address the failures Ofwat had identified.

She said: "I have always said that when things go wrong, it is how we respond and put things right and that is exactly what we are doing.

"In response to Ofwat's findings, we have proposed a ringfenced investment programme of £24m to spend more to further reduce spills, tackle sewer misuse and establish a Nature Recovery Fund.

"This is in addition to the £760m we are already investing over the next five years to reduce the use of storm overflows across the region."

In its investigation, Ofwat said 54% of SWW's wastewater treatment works storm overflows had spilled on 20 or more occasions between 2020 and 2024.

It said SWW had "failed to demonstrate" the spills had happened in exceptional circumstances but said the company had already taken steps to address the operation of a range of its treatment works and storm overflows.

Lynn Parker, senior director for enforcement at Ofwat, said water companies would always be "held to account" if they failed to meet legal obligations.

She said: "Our investigation found a range of failures in how South West Water has gone about managing its wastewater business.

"As we continue to progress our sector-wide investigation, we are pleased that companies like South West Water are stepping up to acknowledge their failures and to put things right.

"We will continue to monitor the company to ensure that this work is carried out as quickly as possible so that customer confidence can begin to be restored."

A consultation will be held to the public and key stakeholders before Ofwat's final decision.

SWW compliance director Louise Rowe said the company was tackling the areas important to its customers such as the bathing beaches.

She said: "We are tackling those first.

"This investment will bring forward that resolution, but it is a long-term solution plan for us to tackle all of those things."

Responding to Ofwat's findings that SWW did not act quickly enough to site spillages, Ms Rowe said the company takes "decisive action" when issues on its sites and networks were identified.

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