Thames Water Faces Record £122.7m Fine Over Sewage Spills and Shareholder Payouts

Thames Water, the UK’s largest water supplier, has been hit with a record £122.7 million fine by the industry regulator, Ofwat. This penalty is the largest ever imposed in the water sector and addresses two major breaches: excessive sewage discharges and improper shareholder dividends.

Ofwat’s investigation revealed that three-quarters of Thames Water’s storm overflows were releasing untreated sewage “routinely,” rather than in exceptional circumstances as permitted. Additionally, the company made significant shareholder payouts, £37.5 million in October 2023 and £131.3 million in March 2024, that were deemed “undeserved” and not reflective of the company’s performance.

The fine comes amid ongoing scrutiny of Thames Water’s operations, including its £20 billion debt and previous sewage leaks. The company, which serves about a quarter of the UK’s population, secured a £3 billion rescue loan earlier this year to avoid collapse.

Ofwat emphasized that the penalties would be borne by Thames Water and its investors, not by customers. The regulator stated that Thames Water had “let down its customers and failed to protect the environment.”

In response, Thames Water acknowledged its responsibilities and stated it was actively seeking new investment to address its financial challenges and improve its operations.