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Thames Water, Britain’s largest water supplier, has been slapped with a record fine of £122.7 million ($165 million) by the UK water regulator Ofwat.
The penalty comes after an investigation revealed widespread pollution and improper dividend payments, representing a “significant breach of the company’s legal obligations.”
Ofwat’s probe into Thames Water’s operations uncovered frequent sewage spills, with the regulator suggesting the true extent was likely “much higher than reported.”
Ofwat chief executive David Black stated, “This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment,” adding that the company must now rectify these issues.
Crucially, Ofwat stipulated that the fines must be paid by the company and its investors, not by customers.
A Thames Water spokesperson acknowledged their responsibility towards the environment and noted Ofwat’s recognition of progress already made.
The fine comprises £104.5 million for wastewater management failings and an additional £18.2 million for breaking rules concerning dividend payments.
Moving forward, the company will require Ofwat’s approval before distributing dividends to shareholders.
UK environment minister Steve Reed hailed the decision as the “largest fine ever handed to a water company in history,” declaring that “The era of profiting from failure is over.”
This penalty is the latest blow to Thames Water, which is burdened by billions in debt and is actively seeking funding to avoid a costly public bailout.
Last year, Ofwat approved a 35% increase in average household Thames Water bills over five years.
In February, the indebted supplier secured a £3 billion emergency loan from creditors as it explores takeover bids.
British water companies, privatised since 1989, have faced persistent criticism for discharging large quantities of sewage into waterways, often attributed to underinvestment in ageing infrastructure.
