Five companies targeted in Ofwat sewage treatment probe

Ofwat has launched enforcement cases into Anglian, Northumbrian, Thames, Wessex and Yorkshire Water after finding cause for “serious concern” about their management of wastewater treatment works.

The water regulator opened an investigation into how water and wastewater companies manage treatment sites in November after reports that companies were operating outside of their flow to full treatment (FFT) permit requirements at some treatment works,

All water and sewerage companies remain subject to the ongoing environmental investigations, with these five being served formal notices to gather evidence for enforcement purposes.

“The data that emerged at the end of last year suggested widespread shortcomings in how water companies were running sewage treatment works. The first phase of our investigation suggests those concerns are credible,” said David Black, Ofwat interim chief executive.

“We have identified shortcomings in most water and wastewater companies and are continuing to investigate. But we have already seen enough in five companies to cause serious concern and warrant us taking further action.”

Information provided by the five raised concerns for Ofwat because they reported a significant number of sites that may be non-compliant with permits; their responses raised concerns about how the company overall manages compliance with environmental obligations; and / or, the companies did not sufficiently show how they are meeting the requirements of their environmental permits.

Ofwat will take a deeper look into Anglian, Northumbrian, Thames, Wessex and Yorkshire and will bring formal enforcement against them if they are not meeting their obligations.

“We will have further questions for all companies on this. In the meantime, we expect them to make quick progress in addressing any potential non-compliance they might have, whilst strengthening how they manage their environmental obligations as a whole,” Black added.

Ofwat can fine companies up to 10% of their annual turnover.

All water and wastewater companies were required to submit information to Ofwat in December for the investigation. All but Hafren Dyfrdwy reported potential non-compliance with FFT requirements at some treatment works.

Many of the companies have begun taking action to bring the treatment works back into compliance, however Ofwat did not receive sufficient assurances from Anglian, Northumbrian, Thames, Wessex and Yorkshire that they monitor and understand the compliance of their sites, or the root causes of non-compliance.

The sector has faced heightened scrutiny over how wastewater treatment processes impact the water environment – especially rivers and chalk streams, which water companies have highlighted as a priority for investment.

An Anglian Water spokesperson said: “We will, of course, continue to support Ofwat with the information they request. We’ve been transparent throughout and the regulator could have asked us at any point for further detail, which we would have provided. We want the public to know they can trust Anglian Water, and that we take our environmental obligations very seriously. We’re already ahead of schedule delivering our £800 million programme of environmental improvements between now and 2025, which is specifically targeted at areas where we know we can make a difference.”

Meanwhile Northumbrian’s director of wastewater, Richard Warneford, said: “The environment is at the heart of everything we do. In its latest assessment, the Environment Agency awarded our environmental performance four stars, the highest rating possible, and we are proud of this and our industry-leading performance on pollution.

“We recognise the gravity of the investigation, will fully comply with the requests made and take our responsibilities very seriously. We were already working closely with our regulators on how we monitor sewage treatment works and have active programmes of work that we are investing significantly in at present,” Warneford concluded.

Thames Water added: “We have long held the view that it is unacceptable for untreated sewage to enter rivers, even when legally permitted and we take this matter very seriously. We set out our position at the Environmental Audit Committee and are committed to being transparent,  and have been developing an action plan, prior to Ofwat’s review, to radically improve our position in order to protect and improve the environment. We will fully cooperate with Ofwat on this next stage of the investigation.

“We have allocated an unprecedented amount of investment directed towards safeguarding our rivers and streams, including spending £1.25 billion on maintaining and improving our operational sites, including contributing to the health of 745 Km of rivers of rivers across London and the Thames Valley. Our aim will always be to try and do the right thing for rivers and for the communities who love and value them. We are already taking action to reduce discharges of untreated sewage and welcome measures that will enable us to deliver our long-term aspirations faster to the benefit of both the communities we serve and the environment we seek to protect.”

“Wessex Water is undertaking a thorough investigation, as part of an industry-wide programme agreed with the Environment Agency and Ofwat, into the accuracy of flow measurement and any implications for full to flow treatment (FFT) at all of its treatment works with flow consents,” a Wessex spokesperson said, and explained the findings are regularly shared with the Environment Agency as well as complying with the additional information request by Ofwat.

A Yorkshire Water spokesperson added: “We take our commitment to care for the environment very seriously. We will of course be cooperating fully with the investigation and it would be inappropriate to comment any further while it is ongoing.”

On behalf of billpayers, Emma Clancy, chief executive of water watchdog CCW, said: “People expect their sewerage company to act responsibly in protecting the environment but this investigation has raised serious questions as to whether some companies have failed to do that.”

She implored companies to act urgently to ensure they are complying with their responsibilities and fix any harm that might have been caused.

“A legacy of this investigation has to be far greater transparency and higher standards of environmental performance from sewerage companies, which need to rebuild trust with their communities,” Clancy said.

Ofwat said all enforcement cases remain under review, and the focus of investigations may change as new information comes to light.