Ofwat launches investigation into ‘unpermitted’ sewage discharges

Ofwat has launched an investigation into allegations of illegal discharges from combined sewer overflows (CSOs) after receiving reports of “widespread unpermitted releases of sewage”.

The regulator said new information, along with analysis by the Environment Agency, suggests water and wastewater companies “may have released sewage into rivers and waterways when they were not legally allowed to do so.”

It warned that findings of non-compliance with environmental permits will lead to prosecution.

Ofwat’s interim chief executive, David Black, wrote to companies requesting full disclosure on any illicit uses of overflows, why they occurred and what level of involvement the company’s board has in monitoring and scrutinising their use.

Black requested company boards explain how environmental performance and compliance was considered in decisions on dividends and executive bonuses.

The letter follows an earlier correspondence from Black in the summer putting pressure on companies to improve their monitoring of CSOs and take action to minismise their environmental impacts.

“I haven’t seen enough to suggest that message was heard or heeded, and this new information suggests there may have been very serious failings by water companies in treating wastewater,” Black said. “We will find out what company boards knew and when, and if there has been management failure or misreporting of data to us and to the public. If we find there has been, we will use all of our powers to hold companies to account.”

Ofwat said the extent of non-compliance suggested by the Environment Agency’s analysis would be “wholly unacceptable” and may indicate a failure of the processes that should be in place to manage CSO use.

The letter from Black requested details of the extent of any non-compliance, including how many sites were affected and estimates of the number of unpermitted CSO spills and how long they lasted. Companies were asked for explanations of the cause of non-compliance and details of their strategy for monitoring and maintaining related assets and systems. It said companies must set out plans and timescales to fix any problems that are uncovered.

Emma Clancy, chief executive of water watchdog CCW, said: “It’s impossible to overstate the seriousness of this investigation. Customers pay their money to wastewater companies in good faith, expecting them to be able to be trusted to provide high quality services while protecting the environment. Should this investigation lead to prosecutions, we would want to see those fines used locally to repair the environmental harm that has been caused.”

Storm overflows became one of the most contentious issues in the Environment Bill, passed last week, after widespread public outrage over sewage discharges. The bill included provisions suggested by Philip Dunne, chair of the Environmental Audit Committee, whose private members’ bill  drew greater attention to the issue.

Dunne said of Ofwat’s prosecution: “I welcome the EA’s and Ofwat’s new investigation, frankly long overdue, seeking to understand better the true scale of the problem of water companies spilling untreated sewage. It is clear that with decades of under-investment in our sewerage network there are no quick fixes, but it is welcome that the government, through the Environment Act passed into law last week, is already taking action to get a grip on this unacceptable activity.”

The EAC has examined regulatory structures around permitted discharges and will share its conclusions on the system’s adequacy as part of its Water Quality in Rivers report.