REG - Water Services Auth - Update on Ofwat investigation

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28/06/2022 08:15

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RNS Number : 3649Q  Water Services Regulation Authority  28 June 2022

South West Water latest company targeted in Ofwat investigation due to
environmental performance

 

Ofwat has announced that it has opened an enforcement case against South West
Water as part of its ongoing investigation into how all wastewater companies
manage their wastewater treatment works
(https://www.ofwat.gov.uk/investigation-into-sewage-treatment-works/) .

 

South West Water joins Anglian Water, Northumbrian Water, Thames Water, Wessex
Water and Yorkshire Water, on the list of companies Ofwat has opened
enforcement cases into. Ongoing concerns and the latest performance data on
South West Water's environmental performance have prompted the move by Ofwat.
The company has now been served with a formal notice to gather further
information for enforcement purposes.

 

As well as South West Water, the five enforcement cases opened in March are
continuing as Ofwat still has concerns, some serious, arising from the
information provided to Ofwat, both in December last year and in response to
formal notices issued by the regulator. This is to ask and understand more
about those concerns and, where things have gone wrong, to seek further
assurances that things are being put right as quickly as possible. From what
Ofwat has seen so far, particular areas of concern include

 

·    issues about the quality and completeness of the information
companies have about how their wastewater treatment works are performing; and,

·    what they do with that information to ensure the works are adequate,
operating correctly and not causing environmental harm, such as through sewage
discharges.

 

All wastewater companies in England and Wales remain subject to the ongoing
investigation. Ofwat will keep the focus of its enforcement cases under
review, and the companies in focus may change as new information comes to
light. Ofwat will shortly be writing to the remaining companies to request
updates on the progress of remediation plans they submitted to Ofwat in
December.

 

David Black, Ofwat Chief Executive, said:

 

"The serious concerns we identified last year prompted our initial focus on
five companies. As we gather and analyse more information, including data on
storm overflow spills, our concerns have grown further about South West
Water's operation of its wastewater assets and environmental performance. As a
result, we have opened an additional enforcement case into South West Water.

 

"We have now opened enforcement cases against the majority of wastewater
companies in England and Wales. From what we have seen so far, the scale of
the issue here is shocking - companies must resolve any problems at wastewater
treatment works and do so quickly. Where they have breached their obligations,
we will not hesitate to act."

 

As the investigation continues, Ofwat expects all companies to make quick
progress to address non-compliance and strengthen the management of their
environmental obligations as a whole. Ofwat is working closely with the
Environment Agency, who are carrying out a criminal investigation into
companies' compliance with environmental permits. Ofwat's enforcement powers
can see the regulator fine companies up to 10% of their annual turnover.

 

Notes to editors

·      A summary of what Ofwat has discovered so far from the five
enforcement cases is on the Ofwat website
(https://www.ofwat.gov.uk/investigation-into-sewage-treatment-works/) .

·      The March announcement
(https://www.ofwat.gov.uk/pn-10-22-sewage-treatment-works-investigation-march-2022-update/)
, where the previous five enforcement cases were announced, can be seen on the
Ofwat website, alongside a summary of what all wastewater companies in England
and Wales have told Ofwat in the information provided in December 2021.
(https://www.ofwat.gov.uk/investigation-into-sewage-treatment-works/)

·      Ofwat is committed to being open and transparent throughout the
investigation and will be providing regular updates on the website
investigation page
(https://www.ofwat.gov.uk/investigation-into-sewage-treatment-works/) .

·      More information is expected to come to light as the
investigation progresses. Ofwat is working closely with the Environment
Agency, who are carrying out a criminal investigation into companies'
compliance with environmental permits. Ofwat's focus and timelines differ from
the Environment Agency because of the different statutory and enforcement
powers each regulator has. While the Environment Agency is investigating
potential breaches of individual environmental permits at treatment works
under a criminal investigation (and as such must be conducted in accordance
with criminal rules and procedures), Ofwat is looking at how overall companies
operate and manage their sewage treatment works and how they report on their
performance about this. More information about the Environment Agency's
investigation can be found here
(https://environmentagency.blog.gov.uk/2022/05/12/update-on-environment-agency-investigation/)
.

·      Issuing notices to gather information for enforcement purposes is
not necessarily an indicator that Ofwat intends to pursue formal enforcement
action against these companies but does indicate that Ofwat considers that a
company may not be or may not have been complying with its obligations. The
information gathered will enable Ofwat to establish if it needs to seek
further information or if its concerns have been addressed.

·      The investigation page on Ofwat's website
(https://www.ofwat.gov.uk/investigation-into-sewage-treatment-works/)
 provides details of what we are investigating, why we are investigating, how
we will do it and our proposed timescales.

·      The enforcement page on Ofwat's website, 'how we investigate'
(https://www.ofwat.gov.uk/regulated-companies/investigations/how-we-investigate/)
, provides more details on Ofwat's enforcement process.

·      The Environment Agency and Ofwat's investigations were announced
in November 2021.

o  Joint PN: Water companies could face legal action after investigation
launched into sewage treatment works
(https://www.ofwat.gov.uk/joint-ofwat-environment-agency-and-defra-announcement-november-2021/)

o  Ofwat PN: Ofwat launches investigation following claims water companies
broke the law
(https://www.ofwat.gov.uk/pn-35-21-letter-from-david-black-to-water-companies-november-2021/)

o  Letter from David Black to water companies
(https://www.ofwat.gov.uk/publication/letter-from-david-black-to-water-companies-november-2021/)
 in November 2021

 

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