Northumbrian Water will pay £15.7 million following regulatory findings of operational and maintenance failures within its water and sewage network.
Water regulator Ofwat announced the enforcement package, specifying that funds will be allocated to local environmental projects and infrastructure upgrades in the region.
The regulator cited “excessive spills from storm overflows” as a direct result of the company’s shortcomings.
This follows last week’s record £122.7 million fine levied against Thames Water for sewage treatment violations and dividend payouts.
Ofwat clarified that Northumbrian Water’s enforcement package surpasses the potential penalty for a direct fine, and ensures investment in local improvements rather than government coffers.
The agreement directs the funds towards accelerating storm overflow reduction and community initiatives via the Branch Out fund, according to Northumbrian Water CEO Heidi Mottram. This investment, she stressed, will be covered by shareholders and not customer bills.
Ofwat’s Lynn Parker, Senior Director of Enforcement, stated that the investigation revealed operational and maintenance failures resulting in unacceptable environmental impacts and customer consequences. Ofwat expects swift remedial action from the water company.
In December 2023, Northumbrian Water announced plans for a 21% average water bill increase over the next five years.
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