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 2 | Version 3 |
|---|---|
| Southern Water faces prosecution after record £126m penalty | Southern Water faces prosecution after record £126m penalty |
| (about 1 hour later) | |
| 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 that polluted rivers and beaches in southern England. | |
| The package imposed by the regulator, Ofwat, includes compensation of £123m to customers over five years and a £3m fine. The company’s 4.2 millioncustomers 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 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.” |
| Ofwat 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 the company, which operates in Kent, Sussex, Hampshire and the Isle of Wight, manipulated its wastewater sampling process and misreported the performance of several sewage treatment sites. | |
| The regulator’s 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.” |
| 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. | 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. |
| The chief executive, Ian McAulay, who was appointed in January 2017, said in a statement: “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.” | |
| He admitted on BBC Radio 4’s Today programme: “It is perfectly reasonable to say there was dishonesty”. He added: “That is incredibly disappointing and not the standard we want to have in this business and I was brought in to make sure that could not happen again.” He dodged a question about whether there should be criminal sanctions, saying: “This was a small number of people.” | |
| It is understood that Southern Water has dismissed several people. McAulay said the company had overhauled its governance, invested £100m in new IT systems and £26m in wastewater assets, and vowed to invest several billions of pounds over the next five years. | |
| Rebecca Long-Bailey, the 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 was the biggest it had 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 bills | Household bills |
| Water bills | Water bills |
| Utilities | Utilities |
| Consumer affairs | Consumer affairs |
| Environment Agency | Environment Agency |
| news | news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |