Ofwat has published an update on how the water sector regulator’s current investigation into how wastewater companies in England and Wales manage their sewage treatment works is progressing.

In an open letter addressed to water customers, Chief Executive David Black said that one year on, he wanted to update customers on the progress Ofwat has made and on the regulator’s work to push wastewater companies to improve their impact on rivers and seas.

“Every time we see sewage being discharged into our rivers and seas, it causes more anger and questions” he explained, saying that to help understand whether this is down to illegal activity with how companies manage their treatment works, Ofwat has made more than 30 evidence requests of companies and analysed over 3,000 pieces of evidence to date.

Based on what Ofwat has learned, enforcement cases had initially been opened in March 2022 against five companies: Anglian Water, Northumbrian Water, Thames Water, Wessex Water and Yorkshire Water. However, whilst these five companies were Ofwat’s initial focus, all wastewater companies remained part of the wider investigation, he added.

Subsequently, in June 2022, “growing concerns about environmental performance led us to open a further enforcement case against South West Water”.

David Black said that Ofwat was scrutinising all the evidence and understood “the importance of addressing these issues as soon as possible”. However he further clarified that it was also important that Ofwat met “the high standards required for any enforcement action.”

He continued by saying that alongside the enforcement work, he had also written to all wastewater companies asking them to set out immediate plans to improve river quality at no extra cost to customers. The companies have now committed to reduce sewage discharges by 25% by 2025.

Ofwat is now monitoring the plans and, from 2025, has proposed compulsory annual targets for further improvement – and Ofwat would back “ambitious and innovative plans to further reduce discharges”, he added. In addition, the regulator had also moved to make sure that companies “are spending more of shareholders' money to reduce use of storm overflows”, together with publishing proposals to strengthen Ofwat’s ability to take action against companies paying out excessive dividends while failing to deliver for customers and the environment.

He concluded by saying that both Ofwat and the public have high expectations that wastewater companies will improve and that the companies are expected to:

• Be open and transparent with their data on river water quality
• Comply with their legal obligations on storm overflows
• Keep the promises that they have made to their customers on cleaning up our rivers and seas

“We have been clear with wastewater companies that the sewage discharges on our beaches and coastlines that we have seen over the past few months are unacceptable and that they must do better”, he said.