This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/money/2019/jun/25/southern-water-penalty-customers

The article has changed 6 times. There is an RSS feed of changes available.

Version 0 Version 1
Southern Water handed £126m penalty over 'shocking' failures Southern Water faces prosecution after record £126m penalty
(32 minutes later)
Southern Water has been handed a record £126m penalty after “serious failures” in its sewage treatment sites and deliberately misreporting of its performance. Southern Water faces prosecution by the Environment Agency after being handed a record £126m penalty by the water regulator over “shocking” failures at its sewage treatment sites.
The package imposed by the regulator, Ofwat, includes compensation of £123m to customers over five years and a £3m fine. The water company’s 4.2 million customers will each receive £61 off their bills – £17 in 2020-21 and £11 in each of the following four years.The package imposed by the regulator, Ofwat, includes compensation of £123m to customers over five years and a £3m fine. The water company’s 4.2 million customers will each receive £61 off their bills – £17 in 2020-21 and £11 in each of the following four years.
The Environment Agency said it was pursuing its own criminal investigation into Southern Water, which began in 2016. “The environmental aspect of the investigation is ongoing and we expect to commence court proceedings soon.”
The Ofwat chief executive, Rachel Fletcher, said: “What we found in this case is shocking. In all, it shows the company was being run with scant regard for its responsibilities to society and the environment.The Ofwat chief executive, Rachel Fletcher, said: “What we found in this case is shocking. In all, it shows the company was being run with scant regard for its responsibilities to society and the environment.
“It was not just the poor operational performance, but the coordinated efforts to hide and deceive customers of the fact that are so troubling.”“It was not just the poor operational performance, but the coordinated efforts to hide and deceive customers of the fact that are so troubling.”
The regulator found Southern Water failed to operate a number of sewage treatment works properly, including not making the necessary investment, which led to equipment failures and spills of wastewater.The regulator found Southern Water failed to operate a number of sewage treatment works properly, including not making the necessary investment, which led to equipment failures and spills of wastewater.
It also found that the company manipulated its wastewater sampling process and misreported the performance of several sewage treatment sites.It also found that the company manipulated its wastewater sampling process and misreported the performance of several sewage treatment sites.
Southern Water said it was “deeply sorry” and added that the costs of the penalty would not be passed on to customers in the form of higher prices. Southern Water said it was “deeply sorry” and added that the costs of the penalty would not be passed on to customers in the form of higher prices. The company is owned by the Greensands consortium of infrastructure investors and pension funds.
Ian McAulay, who was appointed chief executive in January 2017, worked closely with Ofwat and overhauled the company, including investment in the failing treatment sites. The chief executive Ian McAulay, who was appointed in January 2017,
McAulay said: “We are deeply sorry for what has happened. There are no excuses for the failings that occurred between 2010 and 2017 outlined in Ofwat’s report. We have clearly fallen far short of the expectations and trust placed in us by our wastewater customers and the wider communities we serve.” said: “We are deeply sorry for what has happened. There are no excuses for the failings that occurred between 2010 and 2017 outlined in Ofwat’s report. We have clearly fallen far short of the expectations and trust placed in us by our wastewater customers and the wider communities we serve.”
Ofwat said the package of penalties and payments is the biggest it has ever imposed, proportionate to the size of the business. It would have been larger had Southern Water not cooperated with its investigation. The Environment Agency is investigating separately. Rebecca Long Bailey, shadow secretary of state for business, energy and industrial strategy, said: “Today’s eye-watering fines and forced customer rebates demonstrate clearly just how broken our water system is. Despite failures, chronic underinvestment and exorbitant customer bills, many water companies continue to pay out hefty dividends to shareholders.”
Ofwat said the package of penalties and payments is the biggest it has ever imposed, proportionate to the size of the business. It would have been larger had Southern Water not cooperated with its investigation.
Last year, Thames Water, Britain’s biggest water company, received a £120m package of penalties from the regulator, including a £65m payment to customers, for its failure to tackle leaks.Last year, Thames Water, Britain’s biggest water company, received a £120m package of penalties from the regulator, including a £65m payment to customers, for its failure to tackle leaks.
Household billsHousehold bills
Water billsWater bills
UtilitiesUtilities
Consumer affairsConsumer affairs
Environment Agency
newsnews
Share on FacebookShare on Facebook
Share on TwitterShare on Twitter
Share via EmailShare via Email
Share on LinkedInShare on LinkedIn
Share on PinterestShare on Pinterest
Share on WhatsAppShare on WhatsApp
Share on MessengerShare on Messenger
Reuse this contentReuse this content