Northumbrian Water faces £17m fine for 'systemic' mismanagement of sewage networks

The water regulator’s investigation found that Northumbrian Water, which provides the mains water and sewerage services in Northumberland, failed to ensure sewage was only discharged from storm overflows, designed to release wastewater when the system is overwhelmed, in exceptional circumstances.

According to Ofwat’s enforcement order proposal, Northumbrian Water’s “operational issues” at many wastewater sites and its high spill levels have a “strong correlation,” and this suggests the firm has not sufficiently maintained its sewage network.

Ofwat also found the firm “lacked adequate and routine processes to enable it to properly monitor and assess its compliance” with environmental obligations and that Northumbrian Water “has only taken steps more recently, in response to our investigation, to start to rectify this situation.”

The regulator labelled Northumbrian Water’s issues as “systemic.” The fine is 5% of Northumbrian Water’s turnover.

A spokesperson for Northumbrian Water said: "We are very disappointed by Ofwat’s decision to impose a penalty in respect of its flow to full treatment investigation and do not recognise some of the standards of compliance that Ofwat is enforcing.

"These are a departure from its previous practice and appear inconsistent with those of the Environment Agency and the government, and with Ofwat’s own practice in the past.

"We are working really hard to continue to deliver for customers and the environment, and will continue to comply with and exceed government regulations.”

The spokesperson added that the £172m had been invested in the firm’s wastewater network over the last 20 years and that they were on track to invest a further £80m between 2020 and 2025.

Northumbrian Water also plans to spend £1.7bn between 2025 and 2030 in an environmental programme attempting to stop storm overflows.

Thames Water and Yorkshire Water are due to be fined even greater sums by Ofwat to round off the first batch of penalties resulting from the regulator’s nationwide investigation. The firms will be banned from recovering the fines from customers or for charging bill-payers extra for the additional maintenance work required.

Ofwat chief executive David Black said: “Ofwat has uncovered a catalogue of failure by Thames Water, Yorkshire Water, and Northumbrian Water in how they ran their sewage works, and this resulted in excessive spills from storm overflows.

“Our investigation has shown how they routinely released sewage into our rivers and seas, rather than ensuring that this only happens in exceptional circumstances as the law intends.

“The level of penalties we intend to impose signals both the severity of the failings and our determination to take action to ensure water companies do more to deliver cleaner rivers and seas.

“These companies need to move at pace to put things right and meet their obligations to protect customers and the environment. They also need to transform how they look after the environment and to focus on doing better in the future.”

The penalty and enforcement action is under consultation, and representations can be made to Ofwat up until 5pm on September 10.