Thames Water hit with largest-ever fine issued by regulator Ofwat
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.
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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.
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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.”
A 53-year-old man has been charged after a car was driven into a crowd at Liverpool FC’s trophy parade.
Paul Doyle, from the West Derby area of Liverpool, has been charged with seven offences, Merseyside Police said.
The businessman, who is a father-of-three, is accused of two counts of unlawful and malicious wounding with intent to cause grievous bodily harm, and two counts of causing unlawful and malicious grievous bodily harm with intent to cause grievous bodily harm.
Paul Doyle
Doyle is also accused of two counts of attempted unlawful and malicious grievous bodily harm with intent to cause grievous bodily harm, and one count of dangerous driving.
He is due to appear before Liverpool Magistrates Court on Friday.
The charges relate to six people, including two children. A wounding charge and an attempted grievous bodily harm charge relate to a child.
A police car was outside Doyle’s four-bedroom detached family home in the West Derby area on Thursday morning.
According to his social media, he has travelled extensively including Japan, Fiji, India and Australia. Doyle has posted pictures of himself competing in triathlons, and climbing Mount Kilimanjaro.
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New Liverpool incident footage
Thousands of fans were gathered in Liverpool city centre on Monday to celebrate the Premier League champions’ title win when a car struck a crowd on Water Street.
Police said a total of 79 people were injured in the incident, with the youngest aged nine, and the oldest being a 78-year-old.
Seven people remain in hospital in a stable condition.
Forensic officers at the scene in Water Street. Pic: PA
‘Huge volume of evidence’
Chief crown prosecutor for the CPS Mersey-Cheshire, Sarah Hammond, told a news conference on Thursday that the investigation was at an early stage and a “huge volume of evidence” was being reviewed.
“This includes multiple pieces of video footage and numerous witness statements. It is important to ensure that every victim gets the justice they deserve.
“The charges will be kept under review as the investigation progresses.”
Police ‘working tirelessly’
Also at the briefing where the charges were announced was Assistant Chief Constable of Merseyside Police, Jenny Sims, who said: “I fully understand how this incident has left us all shocked and saddened, and I know many will continue to have concerns and questions.
“Our detectives are working tirelessly, with diligence and professionalism, to seek the answer to all of those questions. When we are able to, we will provide further information.”
The youngest victim injured in the Liverpool parade crash on Monday is nine years old, police have said.
They added that the oldest is 78, with all 79 people injured understood to be British. Seven remain in hospital in a stable condition.
Merseyside Police declined to say what drug the 53-year-old man arrested over the incident is alleged to have taken.
“We wouldn’t go into this detail at this stage of the investigation,” the force said.
Police at the scene in Liverpool. Pic: AP
Forensic officers in Water Street. Pic: PA
Police are still questioning the driver and were granted further time to do so on Wednesday.
Officers have until Thursday evening to question the man from West Derby.
He is in custody on suspicion of attempted murder, dangerous driving and drug driving.
Police believe the car which struck pedestrians was able to follow an ambulance crew attending to someone suffering a heart attack after a road block was temporarily lifted.
Hundreds of thousands of Liverpool fans had turned out to celebrate their team’s Premier League title when the incident unfolded on Water Street just after 6pm on Monday.
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‘My boy in his pram, got bounced’
‘The best day of my life turned into worst’
Sky News interviewed a lifelong Liverpool fan who said his five-month-old son was “bounced” 15ft (4.6m) in his pram after they were hit by the vehicle.
The child was not counted in the police’s injury tally.
Daniel Eveson, 36, also said his partner had been driven over.
“The best day of my life turned into [the] worst,” Mr Eveson said.
He added: “Me and my partner were flat on the roof, on the bonnet… we were just both trying to hold on for dear life with Ted next to us.
“And my partner went under the wheels of the car, of the front of the car, and it rolled over her leg, and I just bounced off to the side, but my boy and his pram got bounced totally in the opposite direction – about 15ft down the road.”
Read more:
How the parade crash unfolded
Police given more time to question Liverpool suspect
Why police released ‘unprecedented’ details
Prime Minister Sir Keir Starmer travelled to Liverpool to meet with police chiefs and the local metro mayor.
He said he was being kept informed of developments, adding: “The scenes on Monday were just awful, to see how incredible joy at an amazing achievement turned to horror in a moment.”
Messages of support have been sent to the people of Liverpool, including from the King who said: “I know that the strength of community spirit for which your city is renowned will be a comfort and support to those in need.”
The Prince and Princess of Wales said they were “deeply saddened” by the incident.
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