Ofwat has proposed a £44.7m enforcement package following its findings that Welsh Water has breached its legal obligations in operating its wastewater treatment works and network.
Ofwat’s investigation found that Welsh Water has failed to operate, maintain and upgrade its wastewater assets adequately to ensure they could cope with the flows of sewage and wastewater coming to them. The company also failed to have in place adequate processes and oversight by its senior management and Board to ensure its assets were performing adequately and that it was meeting the legal requirements expected of it.
In acknowledging these breaches, Welsh Water has agreed to take the steps necessary to address the problems identified and there is now a proposed redress package of £44.7 million which would need to be delivered during 2025-30. These costs would be absorbed by the company, and not through higher customer bills and is investment over and above existing plans committed to as part of our 2024 Price Review.
The redress package includes:
- £40.6 million to address harm and reduce spills at specific overflows. The company will also investigate and carry out sealing works on private parts of the sewer network to tackle groundwater infiltration which is a significant contributor to frequently spilling overflows.
- An additional £4.1 million will be invested to improve river water quality in extremely sensitive catchments.
Lynn Parker, Senior Director for Enforcement at Ofwat, said:
“Our investigation has found serious and unacceptable breaches in how Dŵr Cymru Welsh Water has operated and maintained its sewage works and networks, which has resulted in excessive spills from storm overflows to the environment. We now expect them to focus on putting things right so that customers can regain trust in their water company and the critical service they provide.
“We understand that the public wants to see transformative change. That is why we are prioritising this sector-wide investigation, which is holding companies, like Welsh Water, to account. Pending this consultation, Ofwat will have issued enforcement action totalling over £300 million.”
A consultation will now be open to the public and key stakeholders to offer any comments before Ofwat’s final decision is announced. The consultation closes on Thursday 2nd April at 5pm and can be found here: https://www.ofwat.gov.uk/consultations/
