Anglian Water is the latest supplier to face down the prospect of a large bill for failures in its handling of sewage, leading to “excessive spills”.
The industry regulator Ofwat – soon to be scrapped under a planned shake-up of industry oversight – said it was proposing a £62.8m penalty and remedial action following an investigation.
It was recommending the enforcement package after finding that Anglian had breached its legal obligations in operating its wastewater treatment works and network.
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The investigation found shortcomings in wastewater assets along with the processes and management of them, including at senior management and board level.
As part of the package of measures it was proposing, Ofwat said that £5.8m of the penalty would go towards a community fund to support projects focusing on restoring the water environment.
The rest of the money would go towards delivering systems, in at least eight catchments, that would enable storm flows to be substantially improved.
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Lynn Parker, senior director for enforcement at Ofwat, 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. This is a serious breach and is unacceptable.
“We understand that the public wants to see transformative change. That is why we are prioritising this sector-wide investigation which is holding wastewater companies to account for identified failures.
“We are pleased Anglian Water has accepted that it got things wrong and is now focusing on putting that right and taking action to come back into compliance. We expect all companies to do the same so that customers can regain confidence in their water company and the critical service they provide.”
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The company had already committed £100m to improve its spills and pollution performance.
Anglian boss Mark Thurston said: “We understand the need to rebuild trust with customers and that aspects of our performance need to improve to do that.
“Reducing pollutions and spills is our number one operational focus, and we have both the investment and the partners in place to deliver on those promises as part of our £11bn business plan over the next five years.
“In the meantime, we have proposed this redress package, recognising the need to invest in the communities and environments most impacted.
“It will take time and investment to achieve a significant reduction in spills, but we are making good progress.”
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The government announced earlier this month that Ofwat would be abolished in favour of a new super regulator after a landmark report on the industry.
Sir Jon Cunliffe’s review made 88 recommendations, finding that the industry was not working for any stakeholders, including consumers.
Users have been left angry over a historic lack of investment by firms, leaving them vulnerable to climate change-linked challenges including both drought and adverse weather alike.
Household bills are rising by an average £10 a month this financial year to help fix the shortcomings.
