Yorkshire Water forced to pay out £40m after ‘serious failures’
Yorkshire Water will have to pay out a £40m “enforcement package” to address a series of “serious failures” in its maintenance of sewage networks.
The water supplier will pay out £36.6m over the next five years after the water watchdog Ofwat found repeated failures to properly invest in infrastructure.
Environmentally sensitive areas will be targeted by the funds, with a focus on stemming storm overflows to prevent further spills.
Lynn Parker, Ofwat’s senior director for enforcement, said: “Our investigation has found serious failures in how Yorkshire Water has operated and maintained its sewage works and networks, which has resulted in excessive spills from storm overflows.”
“This is a significant breach and is unacceptable.”
The costs are set to be paid for by the company itself and its shareholders, with Ofwat insisting that costs will not be passed on to consumers.
Yorkshire Water worked with water watchdog to put together the package following a highly critical draft report published in August – which proposed a £47m fine for the Yorkshire supplier, alongside £104m for Thames Water and £17m for Northumbrian Water.
Parker added: “We are pleased that Yorkshire Water has recognised this failure and is taking steps to put it right for the benefit of customers and the environment.
“They deserve credit for stepping up and agreeing an enforcement package with us that will help get things back on track as soon as possible.”
Another £3.4m will be contributed to the Great Yorkshire Rivers Partnership – aimed at improving water quality and protecting biodiversity.
A Great Yorkshire Rivers Partnership spokesperson said: “Ofwat’s investigation into how the company was managing its treatment works and wider wastewater network uncovered a number of failings that have amounted to a significant breach of the company’s legal obligations, which has caused an unacceptable impact on the environment and customers.”
This comes as Thames Water revealed this week that it has received six takeover offers and hopes to reach a takeover deal by the end of June.
The embattled South of England water supplier has been fighting to avoid nationalisation amid debts of more than £19bn.