Thames Water has been fined £122.7 million after two investigations into wastewater and dividend payments, in the largest penalty Ofwat has ever issued, the regulator said.
The Reading, England-based water utility will pay £104.5 million for breaches of rules relating to its wastewater operations, after Ofwat said it “failed to protect the environment”.
Ofwat Chief Executive David Black said: “our investigation has uncovered a series of failures by the company to build, maintain and operate adequate infrastructure to meet its obligations.
“The company also failed to come up with an acceptable redress package that would have benefited the environment, so we have imposed a significant financial penalty.”
Thames Water will pay an extra £18.2 million for breaking rules related to dividend payments, the first ever dividend-related fine, Ofwat said.
The regulator said the money will be paid by the utility company and its investors, not by customers.
Environment Secretary Steve Reed said: “The era of profiting from failure is over. The government is cleaning up our rivers, lakes and seas for good.”
The wastewater fine was first proposed last year and confirmed on Wednesday.
By Alex Daniel, PA Business Reporter
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