REG - Water Services Auth - Wastewater Investigation Update

CK Hutchison HoldingsAnnouncement

12/12/2023 08:15

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RNS Number : 4685W  Water Services Regulation Authority  12 December 2023

Wastewater Investigation Update

On 18 November 2021 we announced an investigation into all water and
wastewater companies in England and Wales. This was after several companies
explained that they might not be treating as much sewage at their wastewater
treatment works as they should be, and that this could be resulting in sewage
discharges into the environment at times when this should not be happening.
Within this overarching investigation, we currently have enforcement cases
against six companies.

We have now reached the next stage in our enforcement cases into companies'
management of their sewage treatment works and wider networks. We have
notified Northumbrian Water, Thames Water and Yorkshire Water of our
provisional findings in light of the evidence we have to date.

The companies will now have the opportunity to respond to our provisional
findings, and to provide us with any further relevant evidence for our
consideration. If we find a company has breached an obligation that Ofwat is
responsible for enforcing, we have a duty, subject to certain exceptions, to
issue an enforcement order to require the company to take steps to secure its
compliance, unless we are satisfied that one of the exceptions to that duty
apply.

This is an important stage of our investigation. It will ensure that we have
provided the companies with the opportunity to respond to the provisional
findings and that any future decisions in the case take account of their
representations and any further evidence they might provide. Accordingly, we
will consider any representations the companies make in reaching our final
proposed decisions. We will then publish our proposed decisions for public
consultation. Subject to due process, we expect to be able to do this in the
first quarter of 2024. We will take public consultation responses into account
as part of our final decisions on each of the cases.

As this investigation is ongoing, we cannot comment further on the detail of
these cases for risk of prejudicing the investigation.

We are also continuing to progress the further three current wastewater
enforcement cases opened as part of this overarching investigation; and are
monitoring the remaining wastewater companies, that are not currently the
subject of an enforcement case. As previously set out, the focus and scope of
our enforcement cases may change as new information arises. We will continue
to provide further updates as appropriate.

If Ofwat ultimately makes a finding of breach sufficient to warrant a fine, as
part of its enforcement powers, Ofwat can impose a financial penalty on
companies, the value of which can be up to 10% of relevant turnover. Where
appropriate, Ofwat may decide not to issue an enforcement order, or decide to
impose a reduced or no financial penalty at the conclusion of an
investigation, where a company has come forward to formally commit to taking
appropriate measures to secure its compliance and to provide suitable redress
for its failures.

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