Anglian Water is set to pay a £68.2m ‘redress package’ to improve the quality of its waste management after an investigation by the UK’s water watchdog found it had breached regulations.
Ofwat found that Anglian Water had “fail[ed] to operate and maintain its wastewater assets adequately”, and that it was “systemically breaching” its duty to deal with drainage.
The water company, which serves over six million customers in the East of England, also failed to put in place “adequate processes” to identify and address emerging and present risk, Ofwat noted.
Anglian agreed to invest £62.8m to improve the quality of the environment in its region and further reduce spills, Ofwat said.
This will be funded by the company and its shareholders, with Ofwat insisting customers won’t have to shoulder payments.
The investment will see Anglian avoid an enforcement order of financial penalty, as in previous similar cases – which would have been £57.1m, 6.5 per cent of its relevant turnover.
The redress package will “deliver a better outcome for customers and the environment” than a fine, Ofwat said.
As part of the package, Anglian said it will accelerate investment in storm overflows and invest £57m in improving wastewater flows in at least eight catchments in its region.
A community fund of £5.8m will support projects delivering environmental and social benefits for local communities.
The redress package follows a £24m payment from South West Water earlier this year, while water companies Thames Water and Yorkshire have been previously fined millions by the UK’s water watchdog.
Earlier this month, the government unveiled sweeping reforms in the the ‘biggest overhaul of water regulation in a generation’.
Environment secretary Steve Reed has called the UK’s water system as ‘broken’, with years of under investment leading to soaring pollution incidents.