Thames Water receives record-breaking fine of £122m for pollution and dividend payments
Thames Water has been fined a record-breaking £122.7m by industry watchdog Ofwat.
The water utility giant, which supplies 16 million households across London and the South East, will be forced to pay £104.5m for breaching rules related to its wastewater operations.
It must also pay £18.2m for breaking rules related to dividend payments – Ofwat’s first ever dividend-related fine.
But the sums will be paid by Thames Water and not customers.
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.”
It can pay no more dividends within Thames Water without the regulator’s approval.
More than 50 people protested in Newbury last weekend against the company’s ongoing sewage spills into local waterways in a series of national protests led by environmental campaigners Surfers Against Sewage.
Last month, the charity revealed that instead of achieving a 40 per cent reduction, sewage pollution by private water companies rose by 30 per cent with more than half a million discharges into UK waters, at the same as shareholders cashed in on £1.2bn in dividends.
A recent survey by the charity of more than 2,000 UK adults revealed 54 per cent worried they would become sick if they swam in UK waters.
Water and energy bills rose by £123 annually in England and Wales last month.
