Connect with us

Published

on

Thames Water, the UK’s biggest water provider, has been hit by a record fine by regulator Ofwat.

The company has been fined £122.7m following Ofwat’s “biggest and most complex” investigation.

It follows two investigations related to Thames Water’s wastewater operations and dividend payouts.

Of the total fine, £104.5m – 9% of Thames Water‘s turnover – has been levied for breaches of wastewater rules – just below the maximum 10% of turnover that Ofwat could have applied.

Money blog: Inside the booming one-bed flat market

Pic: istock
Image:
Pic: istock

Another £18.2m penalty will be paid for breaches of dividend payment rules.

It is the first time Ofwat has fined a company for shareholders’ payments which do not “properly reflect” its performance for customers and the environment.

The fine will be paid by Thames Water and its shareholders, Ofwat said, rather than customers.

‘Unacceptable’ environmental impact

The regulator was highly critical of Thames Water’s handling of wastewater, describing it as having an “unacceptable” impact on the environment.

Its investigation of treatment works and the wider wastewater network uncovered failings which “amounted to a significant breach of the company’s legal obligations” and caused that unacceptable environmental impact.

The company announced a 40% spike in sewage spills in December for the period from January to September 2024.

Please use Chrome browser for a more accessible video player

Thames Water boss can ‘save’ company

The fine was so large because Ofwat’s chief executive, David Black, said Thames Water “failed to come up with an acceptable redress package that would have benefited the environment”.

“This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment,” Mr Black said.

“Our investigation has uncovered a series of failures by the company to build, maintain and operate adequate infrastructure to meet its obligations.”

As a result, Thames Water is required to agree to a remediation plan with Ofwat within six months.

Another investigation by the Environment Agency into environmental permits at sewage treatment works is ongoing.

Bad news for Thames Water finances

Thames Water serves 16 million customers across London and the South East and has just about fended off effective nationalisation, having secured an emergency £3bn loan. Its debts now top £19bn.

These fines were not factored into Thames Water’s financial planning for the next five years. The company’s chief executive, Chris Weston, told a recent sitting of the Environment, Food and Rural Affairs select committee that Thames Water’s future was dependent on Ofwat being lenient with fines.

Follow The World
Follow The World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

A Thames Water spokesperson said: “We take our responsibility towards the environment very seriously and note that Ofwat acknowledges we have already made progress to address issues raised in the investigation relating to storm overflows.

“The dividends were declared following a consideration of the company’s legal and regulatory obligations. Our lenders continue to support our liquidity position and our equity raise process continues.”

Continue Reading

UK

Prince Harry denies having ‘physical fight’ with Prince Andrew

Published

on

By

Prince Harry denies having 'physical fight' with Prince Andrew

Prince Harry has denied having a fight with Prince Andrew after it was claimed “punches were thrown” between the pair in 2013.

The allegations appeared in excerpts from a new book on the Duke of York being serialised in the Daily Mail.

It claims a row started after Prince Andrew said something behind Harry’s back, with Andrew “left with a bloody nose” and the pair needing to be broken up.

It also claimed the Duke of York once warned his nephew about marrying Meghan and suggested it wouldn’t last long.

However, a spokesperson for the Duke of Sussex strongly denied the claims.

“I can confirm Prince Harry and Prince Andrew have never had a physical fight, nor did Prince Andrew ever make the comments he is alleged to have made about the Duchess of Sussex to Prince Harry,” a statement said.

They said a legal letter had been sent to the Daily Mail due to “gross inaccuracies, damaging and defamatory remarks” in its reporting.

The book – Entitled: The Rise and Fall of the House of York – is billed as the first joint biography of Prince Andrew and ex-wife Sarah Ferguson.

It’s said to be based on interviews with “over a hundred people who have never spoken before”.

Prince Harry – in his own 2023 book Spare – made his own claims of an altercation with Prince William.

He said his brother once knocked him to the floor amid a confrontation over Meghan’s “rude” and “abrasive” behaviour.

“It all happened so fast. So very fast,” Harry wrote in the book.

“He grabbed me by the collar, ripping my necklace, and he knocked me to the floor. I landed on the dog’s bowl, which cracked under my back, the pieces cutting into me.”

“I lay there for a moment, dazed, then got to my feet and told him to get out,” the prince added.

Harry claimed his brother wanted him to hit him back “but I chose not to”, and that William later returned and apologised.

Read more from Sky News:
Search for British woman missing in Greece
Two-year-old girl found alive in suitcase

The Duke Of Sussex has described his relationship with his family as extremely strained after he quit as a working royal and took legal action against the media, and over the removal of his UK police protection.

He claimed earlier this year the King wouldn’t speak to him and there had “been so many disagreements between myself and some of my family”.

Continue Reading

UK

Search for British woman who disappeared from Greek beach

Published

on

By

Search for British woman who disappeared from Greek beach

A search is under way for a British woman who went missing from a beach in Kavala, northern Greece.

The Hellenic Coastguard said the port authority received reports that Michele Ann Joy Bourda, 59, was missing on the evening of 1 August.

The woman went missing from the Ofrynio beach area.

The coastguard is investigating reports that her belongings were left on the beach.

On Sunday, three recreational craft, five fishing boats and two patrol boats were involved in the search.

According to local media, she lived with her husband, who is reportedly of Greek origin, in the Macedonian city of Serres.

She had gone to the beach with him and reportedly vanished while he was sleeping on a sunbed.

More on Greece

The charity LifeLine Hellas, which put out an appeal to try and find Ms Bourda, said she went missing at noon on 1 August.

She has been described as having straight blonde hair up to her shoulders and being 1.73m tall.

Continue Reading

UK

Martin Lewis reveals who is due for car finance compensation – and how much they’ll get

Published

on

By

Martin Lewis reveals who is due for car finance compensation - and how much they'll get

Martin Lewis says motorists who were mis-sold car finance are likely to receive “hundreds, not thousands of pounds” – with regulators launching a consultation on a new compensation scheme.

The founder of MoneySavingExpert.com believes it is “very likely” that about 40% of Britons who entered personal contact purchase or hire purchase agreements between 2007 and 2021 will be eligible for payouts.

“Discretionary commission arrangements” saw brokers and dealers charge higher levels of interest so they could receive more commission, without telling consumers.

Pics: PA
Image:
Pics: PA

Speaking to Sky News Radio’s Faye Rowlands, Lewis said: “Very rarely will it be thousands of pounds unless you have more than one car finance deal.

“So up to about a maximum of £950 per car finance deal where you are due compensation.”

Lewis explained that consumers who believe they may have been affected should check whether they had a discretionary commission arrangement by writing to their car finance company.

However, the personal finance guru warned against using a claims firm.

More on Money

“They’re hardly going to do anything for you and you might get the money paid to you automatically anyway, in which case you’re giving them 30% for nothing,” he added.

Read more: How to tell if you’ve been mis-sold car finance

Please use Chrome browser for a more accessible video player

Who’s eligible for payout after car finance scandal?

Yesterday, the Financial Conduct Authority said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

The FCA’s statement added that those affected “should be appropriately compensated in an orderly, consistent and efficient way”.

Lewis told Sky News that the consultation will launch in October – and will take six weeks.

“We expect payouts to come in 2026, assuming this will happen and it’s very likely to happen,” he said.

“As for exactly how will work, it hasn’t decided yet. Firms will have to contact people, although there is an issue about them having destroyed some of the data for older claims.”

He believes claims will either be paid automatically – or affected consumers will need to opt in and apply to get compensation back.

Read more from Sky News:
Hamas ‘ready’ to deliver aid to hostages
Oasis ‘saddened’ after man dies at concert

What motorists should do next

The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.

Anyone who has already complained does not need to do anything.

The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now”.

Its website advises drivers to complain to their finance provider first.

If you’re unhappy with the response, you can then contact the Financial Ombudsman.

Any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.

The FCA has warned motorists that doing so could end up costing you 30% of any compensation in fees.

The FCA estimates the cost of any scheme – including compensation and administrative costs – to be no lower than £9bn.

But in a video on X, Lewis said that millions of people are likely to be due a share of up to £18bn.

The regulator’s announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

Continue Reading

Trending