Ofwat proposes nearly $15 million penalty on Wessex Water for sewage failures

Ofwat Suggests $15 Million Fine for Wessex Water's Sewage Issues

Ofwat's Enforcement Action Against Wessex Water

(Reuters) -Britain's water regulator Ofwat proposed an 11 million pound ($14.8 million) enforcement package against Wessex Water on Tuesday after finding the utility failed to adequately operate and maintain its wastewater network, which led to sewage spills.

Details of the Proposed Penalty

The case marks the sixth enforcement action in Ofwat's sector-wide investigation into wastewater management, bringing total penalties against water companies to more than 240 million pounds this year as the industry faces mounting public anger over sewage discharges into rivers and seas.

Wessex Water's Response and Future Plans

Cases against Yorkshire Water, Thames Water, Northumbrian Water, Anglian Water and South West Water have been settled this year.

Impact on the Water Sector

Wessex Water and its shareholders will fund the entire package, which includes measures to seal sewer pipes, reduce storm overflow spills and install additional monitoring equipment, with none of the costs passed on to customers through higher bills, according to Ofwat.

Lynn Parker, senior director for enforcement at Ofwat, said the investigation found Wessex Water "failed to effectively operate, maintain and upgrade its wastewater assets," though she credited the company for being "one of the more proactive" in addressing problems.

Wessex Water has invested more than 150 million pounds since 2020 on upgrading storm overflows and has plans for 2025-2030 to address many compliance issues, though further measures are needed to ensure full compliance, the regulator said.

A public consultation will follow before Ofwat makes its final decision on the enforcement package.

($1 = 0.7451 pounds)

(Reporting by Yadarisa Shabong in Bengaluru; Editing by Mrigank Dhaniwala)