Outrage as Thames Water allowed to pay just a fifth of record pollution fines

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https://morningstaronline.co.uk/article/outrage-thames-water-allowed-pay-just-fifth-record-pollution-fines

 A Thames Water van

THAMES WATER will only have to pay a fifth of its record £122.7 million in fines under a “sweetheart deal,” with industry regulator Ofwat branded “outrageous” by water campaigners today.

The heavily indebted utility firm was handed the penalties in May for failures over sewage treatment and paying out dividends.

It has already passed a deadline for paying them by August 20 but has now agreed to pay only a fifth by the end of next month, with the remainder subject to securing a private rescue deal and cash injection.

Ofwat said that it had set a final “backstop date” of March 31 2030 for payment of the remaining penalties whether or not Britain’s biggest water company avoids insolvency.

It would have 30 calendar days to pay up after securing such a deal or at the end of an insolvency process that would see it placed into a government special administration scheme.

River Action chief executive James Wallace said: “It is outrageous that Thames Water has been allowed to kick its fine down the road.

“This fine must be paid by those responsible, not future owners and investors.

“Ordinary people do not get to walk into court and say, ‘I’ll pay the rest of my penalty if I get a better paying job.’ Yet that is exactly the sweetheart deal Thames Water has secured.

“This is not accountability. The investors who drained the company and pocketed £170 million in dividends in October 2023 and March 2024 may never feel the consequences.

Article continues at https://morningstaronline.co.uk/article/outrage-thames-water-allowed-pay-just-fifth-record-pollution-fines

April 2023 Surfers Against Sewage and Extinction Rebellion protests in St Agnes, Perranporth, Truro and Charlestown which unveiled spoof Blue Plaques to the MPs and Conservative Government who allowed raw sewage to be dumped in the sea (Image: Surfers Against Sewage)
April 2023 Surfers Against Sewage and Extinction Rebellion protests in St Agnes, Perranporth, Truro and Charlestown which unveiled spoof Blue Plaques to the MPs and Conservative Government who allowed raw sewage to be dumped in the sea (Image: Surfers Against Sewage)
Continue ReadingOutrage as Thames Water allowed to pay just a fifth of record pollution fines

Environmental charity files legal challenge over government’s inaction on Thames Water

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 Thames Water delivering a temporary water supply from a tanker, August 2022

ENVIRONMENTAL charity River Action filed a legal challenge today against the government’s lack of preparation for temporary nationalisation of floundering water companies.

The group argues that Environment Secretary Steve Reed has acted unlawfully by failing to develop or publish policy on when he would put failing firms into special administration.

Campaigners pointed to Thames Water as a clear candidate for special administration, citing repeated breaches of its statutory and licence obligations.

Thames was revealed earlier this month to be the worst polluter of all the water firms in Britain, accounting for 44 per cent of incidents classified as “serious.”

River Action head of legal Emma Dearnaley said: “The government has the power but won’t use it, or even explain when it might trigger this process.

“Apparently, the government has no policy at all. That’s a fundamental failure of transparency and accountability — and it’s unlawful.”

She added: “We need water companies that serve customers and protect our rivers, not prioritise financial returns to investors.

https://morningstaronline.co.uk/article/environmental-charity-files-legal-challenge-over-governments-inaction-thames-water

Continue ReadingEnvironmental charity files legal challenge over government’s inaction on Thames Water

Campaigners call for end to water privatisation as Thames Water fined over sewage

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 A tanker from Thames Water, August 2022

CAMPAIGNERS called for an end to water privatisation as Thames Water was today fined a record £122.7 million for breaking rules over sewage treatment and paying out dividends.

An investigation into Britain’s biggest water supplier revealed “a series of failures by the company to build, maintain and operate adequate infrastructure,” said water regulator Ofwat.

Nearly £170m of dividend payments by Thames in October 2023 and March 2024 were not justified in “a clear-cut case where Thames Water has let down its customers and failed to protect the environment,” said Ofwat chief executive David Black.

We Own It founder and director Cat Hobbs said: “None of this changes the underlying problem — as long as water is privatised, we will continue to be ripped off, and rivers will continue to be polluted for profit.”

River Action chief James Wallace added that “nothing will change unless the privatisation of Thames Water stops.” He urged Environment Secretary Steve Reed to “put this failing company into special administration and restructure its ownership and governance so it can be owned by and operated for public benefit.”

Article continues at https://morningstaronline.co.uk/article/campaigners-call-end-water-privatisation-thames-water-fined-over-sewage

Continue ReadingCampaigners call for end to water privatisation as Thames Water fined over sewage

Campaigners launch legal challenge against Ofwat for making customers pay its failures

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People take part in the Clean Water march in central London, to demand tougher action on keeping Britain’s rivers and seas clean, November 3, 2024

CAMPAIGNERS launched a legal challenge against Ofwat today, accusing the water regulator of unlawfully forcing customers to foot the bill for decades of neglect by the industry.

River Action launched the challenge on the same day water bills per year in England and Wales increased by an average of £123.

The challenge centres on Ofwat’s 2024 price review, which granted “enhanced funding” to United Utilities.

Campaigners say that the regulator failed to ensure the extra funds would be spent on new water and sewage projects instead of fixing historic issues.

River Action argues that such decisions mean that customers could be forced to pay twice for failing infrastructure: once through previous water bills and again through upcoming charges.

Alarmingly, campaigners warned that Ofwat relies on using simulation modelling to forecast sewage infrastructure capacity rather than real-world data when making its funding decisions.

Article continues at https://morningstaronline.co.uk/article/campaigners-launch-legal-challenge-against-ofwat-for-making-customers-pay-its-failures

Continue ReadingCampaigners launch legal challenge against Ofwat for making customers pay its failures

River Action hires top litigator as it intensifies its efforts to hold polluters account

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People take part in the Clean Water march in central London, to demand tougher action on keeping the UK’s rivers and seas clean, November 3, 2024

THE River Action campaign has hired a top litigator as it intensifies efforts to hold polluters account and restore Britain’s waterways.

Emma Dearnaley, previously legal director at the Good Law Project, will join the group as its new head of legal in January.

She fought several cases in her former job, including a successful challenge against the Department for Environment Food and Rural Affairs that led to the government expanding the scope of its Storm Overflows Discharge Reduction Plan to include coastal waters.

River Action chief executive James Wallace said: “This is a shot across the bow for polluters and the government alike.

“The law is one of our strongest tools, not only to compel polluters to repair and update their infrastructure but also to compel the government to adequately fund environmental regulators.

“After 14 years of budget cuts, it’s time for the Environment Agency to have the resources to enforce the law against agricultural, sewage and chemical polluters and for Ofwat to stop water companies polluting for profit.”

https://morningstaronline.co.uk/article/river-action-hires-top-litigator-it-intensifies-its-efforts-hold-polluters-account

Continue ReadingRiver Action hires top litigator as it intensifies its efforts to hold polluters account