Thames Water issued a record penalty of £122.7 million.

Thames Water has been handed a record £122.7m fine by the UK's water regulator, Ofwat, for breaching sewage rules and making unjustified shareholder payouts. The penalty is the largest ever issued by Ofwat and is split into two parts: £104.5m for sewage operation breaches and £18.2m for dividend payments deemed "undeserved" and not reflecting the company's performance.


The regulator found that Thames Water had allowed storm overflows to spill sewage into waterways more frequently than allowed, and the dividends were made without considering the firm's environmental obligations. Despite the fine, water bills for Thames Water's customers will not increase further, with the costs being borne by the company and its investors. The news comes as the firm struggles under a £20bn debt burden and seeks additional investment. Environment Secretary Steve Reed has stated that the "era of profiting from failure is over". Thames Water has faced significant criticism following a series of sewage discharges and leaks, and its financial situation led to a near-collapse before securing a £3bn rescue loan earlier this year.
BBC