THE water services regulation authority has proposed a £24-million enforcement package on South West Water for failures in managing its wastewater treatment works and network.

An Ofwat investigation revealed the company, which provides water supply and wastewater treatment services in Devon and Cornwall, did not meet its legal obligations, which resulted in wastewater spilling into the environment when it should not have done.

The amount of money is to be paid by the company and its shareholders for the benefit of South West Water customers and the local environment.

The announcement represents the next stage of Ofwat's largest and most complex set of investigations into all water companies and their management of their wastewater treatment works. It follows the conclusion of cases against Yorkshire Water, Thames Water and Northumbrian Water earlier this year that resulted in enforcement action worth more than £160-million.

Ofwat’s investigation found that South West Water has failed to build and operate its wastewater treatment works and sewer networks to ensure they performed sufficiently. The company did not have in place adequate management systems to ensure it was meeting its legal obligations in this regard, including adequate oversight from its senior management team and Board.

South West Water has recognised its failures and is taking steps to put it right as part of the proposed £24-million enforcement package, which includes investing £20-million during 2025-30 to reduce spills from specific storm overflows. This investment will target overflows in environmentally sensitive areas or within focused community areas.

Establishing a £2-million local fund to tackle sewer misuse and misconnections, which can contribute to environmental pollution.

Providing £2-million of funding through a Nature Recovery Fund to support environmental groups in delivering local environmental improvements.

In addition the company will commit to taking the necessary steps to address the failures Ofwat has identified, securing its future compliance.

Lynn Parker, senior director for enforcement at Ofwat, said: “Water companies should be in no doubt that they will be held to account if they fail to meet their legal obligations to customers and the environment. Our investigation found a range of failures in how South West Water has gone about managing its wastewater business. That is why we have secured the £24-million package and a commitment to put things right.

“As we continue to progress our sector-wide investigation, we are pleased that companies like South West Water are stepping up to acknowledge their failures and to put things right. We will continue to monitor the company to ensure that this work is carried out as quickly as possible so that customer confidence can begin to be restored.”

South West Water has taken already taken some steps to address its compliance issues. These include investment to investigate and improve the operation of a range of its treatment works and storm overflows, and the introduction of new governance arrangements to ensure greater oversight of its compliance with its environmental obligations.

Noah Law, MP for St Austell and Newquay, who has managed hundreds of complaints from constituents about South West Water - particularly around sewage pollution, said: "Any proceeds received should go to support the acceleration of key infrastructure upgrades, like the six combined sewer overflow hotspots I have been pressing South West Water to upgrade."

A consultation is now to the public and stakeholders to offer any final comments on Ofwat's proposed decision before it is finalised. The consultation can be found here: https://www.ofwat.gov.uk/consultations/