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.
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.
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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.
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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.”
As a ban on the sale of disposable vapes comes into force on Sunday, a doctor who set up the first-ever clinic to help children stop vaping has said she has seen patients so addicted they couldn’t sleep through the night without them.
Professor Rachel Isba established the clinic at Alder Hey Hospital in Liverpool in January and has now seen several patients as young as 11 years old who are nicotine dependent.
“Some of the young people vape before they get out of bed. They are sleeping with them under their pillow,” she told Sky News.
Image: Professor Rachel Isba set up the first-ever stop vaping clinic for children
“I’m hearing stories of some children waking up at three o’clock in the morning, thinking they can’t sleep, thinking the vape will help them get back to sleep. Whereas, actually, that’s the complete opposite of how nicotine works.”
Ms Isba said most of her patients use disposable vapes, and while some young people may use the chance to give up, others will simply move to refillable devices after the ban.
“To me, vaping feels quite a lot like the beginning of smoking. I’m not surprised, but disappointed on behalf of the children that history has repeated itself.”
A government ban on single-use vapes comes into effect from Sunday, prohibiting the sale of disposable vaping products across the UK, both online and in-store, whether or not they contain nicotine.
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The Department for Environment, Food and Rural Affairs (Defra) said usage among young vapers remained too high, and the ban would “put an end to their alarming rise in school playgrounds and the avalanche of rubbish flooding the nation’s streets”.
Image: Pic: PA
Circular economy minister Mary Creagh said: “For too long, single-use vapes have blighted our streets as litter and hooked our children on nicotine. That ends today. The government calls time on these nasty devices.”
At nearby Shrewsbury House Youth Club in Everton, a group of 11 and 12-year-old girls said vape addiction is already rife among their friends.
Yasmin Dumbell said: “Every day we go out, and at least someone has a vape. I know people who started in year five. It’s constantly in their hand.”
Image: Yasmin Dumbell says she knows students who started vaping in year five
Her friend Una Quayle said metal detectors were installed at her school to try to stop pupils bringing in vapes, and they are having special assemblies about the dangers of the devices.
But, she said, students “find ways to get around the scanners though – they hide them in their shorts and go to the bathroom and do it”.
Image: Una Quayle says metal detectors installed at her school won’t stop students using vapes
The girls said the ban on disposables is unlikely to make a difference for their friends who are already addicted.
According to Una, they’ll “find a way to get nicotine into their system”.
As well as trying to address the rise in young people vaping, the government hopes banning single-use vapes will reduce some of the environmental impact the devices have.
Although all vapes can be recycled, only a tiny proportion are – with around eight million a week ending up in the bin or on the floor.
Pulled apart by hand
Even those that are recycled have to be pulled apart by hand, as there is currently no way to automate the process.
Scott Butler, executive director of Material Focus, a recycling non-profit group, said vapes were “some of the most environmentally wasteful, damaging, dangerous consumer products ever sold”.
His organisation worries that with new, legal models being designed to almost exactly mimic disposables in look and feel – and being sold for a similar price – people will just keep throwing them away.
He said the behaviour “is too ingrained. The general public have been told ‘vapes are disposable’. They’ve even been marketed this way. But they never were disposable”.
A ban on disposable vapes comes into force on Sunday, with a warning issued about the “life-threatening dangers” of stockpiling.
From Sunday it will be illegal for any business to sell or supply, or have in their possession for sale, all single-use or disposable vapes.
Online nicotine retailer Haypp said 82% of the 369 customers they surveyed plan to bulk purchase the vapes before they are no longer available.
But the vapes contain lithium batteries and could catch fire if not stored correctly.
Image: A sign for customers at a Tesco store in Gerrards Cross, Buckinghamshire. Pic: PA
While more than a third (34%) of people surveyed by Haypp said they would consider buying an illegal vape after the ban, the overall number of people using disposable products has fallen from 30% to to 24% of vapers, according to Action on Smoking and Health.
Shops selling vapes are required to offer a “take back” service, where they accept vapes and vape parts that customers return for recycling – including single use products.
The Local Government Association (LGA) led the call for a ban two years ago, due to environmental and wellbeing concerns, and is warning people not to stockpile.
Cllr David Fothergill, chairman of the LGA’s Community Wellbeing Board, said: “Failing to store disposable vapes correctly could cost lives, given the significant fire risk they pose.”
How disposable vapes catch fire – or even explode
Figures obtained by the Electric Tobacconist, via Freedom of Information requests, found an increase in vape related fires – from 89 in 2020 to 399 in 2024.
Many disposable vapes use cheap, or even unregulated lithium-ion batteries, to keep the costs down. These batteries often lack proper safety features, like thermal cut offs, making them more prone to overheating and catching fire.
If the battery is damaged, or overheats in any way it can cause thermal runaway – a chain reaction where the battery’s temperature rapidly increases, causing it to overheat uncontrollably.
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Then, once these fires start start, they are very hard to stop. Water alone can make things worse if the battery is still generating heat, so they require specialised fire suppressants to put them out.
Batteries can then re-ignite hours, or even days later, making them a persistent hazard.
Disposable vapes are a hazard for waste and litter collection and cause fires in bin lorries, even though customers have been warned not to throw them away in household waste. They are almost impossible to recycle because they are designed as one unit so the batteries cannot be separated from plastic.
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Some 8.2 million units were thrown away, or recycled incorrectly, every week prior to the ban.
The Department for Environment, Food and Rural Affairs (Defra) said usage among young vapers remained too high, and the ban would “put an end to their alarming rise in school playgrounds and the avalanche of rubbish flooding the nation’s streets”.
Circular economy minister Mary Creagh said: “For too long, single-use vapes have blighted our streets as litter and hooked our children on nicotine. That ends today.
“The government calls time on these nasty devices.”
‘One in five say they will return to cigarettes’
Separate research by life insurance experts at Confused.com found two in five people (37%) planned to stop vaping when the ban starts.
Nearly one in five (19%) said they would return to cigarettes once the ban comes into force.
The research was based on the answers of 500 UK adults who currently vape.
Vaping and smoking also appears to be on the rise, with Confused.com saying there was a 44% increase in the number of people declaring they smoke or vape on their life insurance policy since 2019.
Russell Brand has pleaded not guilty to rape and sexual assault charges as he appeared in court in London.
The British comedian and actor, from Hambleden in Buckinghamshire, was charged by post last month with one count each of rape, indecent assault and oral rape as well as two counts of sexual assault.
The charges relate to alleged incidents involving four separate women between 1999 and 2005.
The 49-year-old, who has been living in the US, was flanked by two officers as he pleaded not guilty to all the charges at Southwark Crown Court today.
Image: Russell Brand appears at Southwark Crown Court. Pic: Reuters
Brand stood completely still and looked straight ahead as he delivered his pleas.
The comedian, who has consistently denied having non-consensual sex since allegations were first aired two years ago, is due to stand trial in June 2026.