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Anglian Water is facing paying out \u00a362.8m after an investigation by the industry regulator found a “serious breach” in how the company managed its sewage works.<\/p>\n
Ofwat has proposed a number of improvements Anglian Water must make to its wastewater treatment works and network after discovering “excessive spills from storm overflows”.<\/p>\n
The firm could have been fined \u00a357.1m but Ofwat said Anglian Water had acknowledged its failures and agreed to fund investments. <\/p>\n
Anglian – which is one of six water firms banned from paying its chief executive a bonus for last year – said: “We understand the need to rebuild trust with customers and that aspects of our performance need to improve to do that.”<\/p>\n<\/div>\n
Lynn Parker, Ofwat’s senior director for enforcement, said: “Our investigation has found failures in how Anglian Water has operated and maintained its sewage works and networks, which has resulted in excessive spills from storm overflows.<\/p>\n
“This is a serious breach and is unacceptable.”<\/p>\n
Ofwat said Anglian would invest \u00a357m to improve wastewater flows in its region and also pay \u00a35.8m into a fund to support projects aimed at providing environmental and social benefits for local communities.<\/p>\n
Mark Thurston, who took over as Anglian’s chief executive in July last year from Peter Simpson, said: “It will take time and investment to achieve a significant reduction in spills, but we are making good progress.”<\/p>\n
He said the company has allocated \u00a31bn to fund measures aimed at halving the number of spills by 2030.<\/p>\n
By that time, the average annual household water and waste bill for an Anglian customers will rise to \u00a3631, compared to an average \u00a3491 last year. <\/p>\n
A recent report by the Independent Water Commission noted that water companies were hiking bills following years of underinvestment.<\/p>\n
Firms have claimed that they have been held back from investing in the country’s pipes and sewage treatment facilities because Ofwat limited price increases for customers.<\/p>\n
Last year, Ofwat – which the report recommended to be scrapped and rolled into a single regulator – announced that water bills in England and Wales would increase sharply over five years to raise \u00a3104bn to invest in infrastructure.<\/p>\n
However, since being privatised in 1989, water companies have been criticised for paying out billions of pounds to shareholders, including to overseas investment funds.<\/p>\n
Anglian Water is owned by a company that is registered in Jersey. Its biggest shareholders are based in Canada, Australia and Abu Dhabi.<\/p>\n<\/div>\n