Water industry regulator Ofwat is currently considering whether to impose a draft penalty notice on Thames Water.
The issue was discussed at the latest Ofwat Board meeting chaired by Ofwat chairman Jonson Cox on 28th March, when the Board received an update on the case against Thames Water for breaching its licence obligations in relation to the reporting of sewer flooding information.
Based on the facts of the case and analysis undertaken, the Ofwat Executive team has proposed to the Board that Ofwat should issue a draft penalty notice under section 22A of the Water Industry Act 1991.
The Executive highlighted the importance of Board Members, when making decisions of this nature, being familiar with the information provided by the Executive.
According to the Minutes of the meeting, the Board Members “noted the need to satisfy themselves that they have had regard to all relevant information” and on that basis, agreed in principle to Ofwat issuing a draft penalty notice to Thames Water.
The Ofwat Board has now delegated authority to Chief Executive Cathryn Ross to engage with Thames Water regarding a possible early resolution of the case.
In the event that an early resolution is not a viable option, Ofwat will then publish the draft penalty notice and seek to remedy consumer harm via the PR14 process.
The Water Industry Act 1991 provides that in certain circumstances an enforcement authority – in this case Ofwat - may impose a financial penalty on providers of water and sewerage services. However, any financial penalty collected is not returned to customers but is paid into the Consolidated Fund operated by the Treasury
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