Thames water hit with record £122.7 million fine by Ofwat,

Sewage leaks and ‘undeserved dividends’ led to the record breaking penalty.

Transcript

00:00Thames Water has been fined more than £122 million, marking the biggest penalty of its kind

00:11for breaking rules around sewage discharges and improper dividend payments. The water regulator

00:18Offwatt described the case as its most detailed investigation to date and confirmed that the fine

00:24will be paid by the company and its investors, not by customers. The story carries major significance

00:32here in London, where Thames Water supplies drinking water and manages wastewater for nearly

00:38every household. The company, which serves around 60 million people across the capital and surrounding

00:45areas, has faced repeated criticism for pollution incidents and poor customer service in recent years.

00:53Offwatt found that Thames failed to properly maintain and operate its sewage network,

01:00leading to environmental damage. In a separate finding, the company was also fined for awarding

01:07dividends to shareholders that were deemed undeserved given its underperformance. The fine lands just

01:14weeks after average annual bills for Thames Water users increased significantly. Many households across

01:22London are now paying some of the highest water bills in the country. Thames Water says it's committed to

01:30making improvements and is continuing efforts to raise more private investment. Meanwhile, the government

01:37has just confirmed it remains prepared to step in if the company becomes financially unviable.

01:44You're going to purchase an investment in this country. Now, the Government has just been a part of the

01:47building, so that the bank has just returned to the country. Now, get that out of the government.

01:48That's the place. So, you can get that out of the building. That's what it is worth looking for.

01:49You can use silicon-based company, trust in this country. And this is something we are going to go to the

01:50market. So, it's looking at the level.

01:52So, I'll just see if there's a day with a lot of trust in the country.