Ofwat is now investigating all eleven of England and Wales’ water companies

Ofwat is opening enforcement cases into four more water companies, meaning it is now investigating every single water and wastewater firm in England and Wales for the mismanagement of their networks and treatment.

On Tuesday the regulator confirmed it has served formal notices on Dŵr Cymru Welsh Water, Hafren Dyfrdwy, Severn Trent and United Utilities to gather evidence for the investigation.

The notices follow a what Ofwat described as a “detailed” analysis of information on firms’ environmental performance and data about the regularity of their spills from storm overflows.

The regulator believes the four firms may not be fulfilling their obligation to protect the environment and minimise pollution, meaning that it is now investigating all 11 water companies in England and Wales.

Investigations into Anglian Water, Northumbrian Water, South West Water and Thames Water, which last week was effectively placed into special measures by Ofwat, are ongoing from 2022, while Southern Water is still subject to monitoring following a case that dates back to 2019.

David Black, Ofwat’s chief executive, said: ““The fact that Ofwat now has enforcement cases with all 11 of the wastewater companies in England and Wales demonstrates how concerned we are about the sector’s environmental performance.

“Where we find that companies have breached their obligations, we will continue to act – over recent years, we have imposed penalties and payments of over £300 million on water and wastewater companies.”

The notices come after three of the firms now being investigated were embroiled in high profile controversies regarding their management of the business in the face of ongoing environmental concerns . In May, United Utilities attracted the ire of campaigners after it hiked its dividend despite being ranked as the worst polluting water company in the country by the Environment Agency.

And just a week later, the boss of Severn Trent was forced to defend her multimillion pound pay package on which the firm’s remuneration committee signed off despite spills rising by a third in 2023. In the same results the firm announced an ambitious programme to reduce its use of storm overflow.

Meanwhile, a month ago, Welsh Water was fined £90,000 for polluting the River Wye after the Environment Agency conducted a routine sampling test.

A spokeswoman for Welsh Water said in response to the enforcement case: “We will not shy away from the challenges facing us and will comply fully with Ofwat’s investigation and be open and transparent with the information we share with them.

“We have been working closely with our regulators on the monitoring of our wastewater treatment works and are investing at record levels to improve service. We will continue to work with all our regulators to ensure environmental performance improves.” 

A United Utilities spokeswoman said: ““United Utilities understands and shares people’s concerns about the issue of storm overflows, which is why we have invested hundreds of millions of pounds in recent years to reduce the number of spills…

“Following today’s announcement from Ofwat, we will continue to work closely with the regulator and provide it with the information it requires as part of the next stage of its sector-wide review into storm overflow operations.”

The enforcement cases will only add to water companies’ unenviable in tray, as many face a slew of regulatory and legal cases relating to their sewage spills.

Just last week the Supreme Court ruled that private landowners could seek compensation for the ill effects of sewage on their personal circumstances, opening the firms up to a litany of further claims.

And the Environment Agency, a second regulator, is in the midst of a major criminal investigation into whether firms were compliant with regulation at over 2,000 treatment works.

A spokesman for Hafren Dyfrdwy said: “We are absolutely committed to delivering an ambitious environmental plan which will ensure that we will not be the reason for any unhealthy rivers in Wales by 2030 – this includes rapidly reducing spills from storm overflows.

“We’ll work constructively with Ofwat and are confident in reaching a resolution as quickly as possible.”

Severn Trent was approached for comment.