Ofwat has proposed accepting a £280,000 enforcement package following its finding that Hafren Dyfrdwy has breached its legal obligations in the operation of its wastewater treatment works and network. The regulator has found that the company has failed in its duties to deal effectively with wastewater and sewage.

This is the ninth case in Ofwat's wider wastewater investigation, which has already secured more than £300 million in enforcement packages and fines.

Acknowledging the breaches, Hafren Dyfrdwy has agreed to take the steps necessary to address the problems identified and proposed the £280,000 redress package, which would need to be delivered between now and 2030.

The water sector regulator can impose financial penalties of up to 10% of a company's turnover. ​Had the proposed enforcement package not been brought forward, a penalty would have been applied where the money would have been returned to the Consolidated Fund operated by HM Treasury.

​Ofwat said the £280,000 enforcement package it has secured is greater than if a penalty had otherwise been imposed on the company (which would have been £255,000, 3.5% of Hafren Dyfrdwy's annual turnover).

The regulator said the enforcement package will be funded by the company and its shareholders, not through higher customer bills.

The investigation found that the company breached its obligations, failing to effectually provide drainage and deal with the contents of its sewers. The company was also found to have historically breached requirements of its licence to have in place adequate processes and systems to meet those obligations. While it now has the right processes in place, the company is required to rectify all outstanding issues and ensure future compliance with regard to the obligations.

The package includes the installation of two storm water balancing tanks at Llansantffraid Sewage Pumping Station to reduce spills, and a community-based offering with the company working with the Llanfyllin Dolydd Building Preservation Trust to support creation of a wetland habitat on the Llanfyllin Workhouse. This is expected to be completed by 2030.

Lynn Parker, Senior Director for Enforcement at Ofwat, said:

"Our investigation found unacceptable breaches by Hafren Dyfrdwy, which have resulted in excessive spills from storm overflows. We are clear this is unacceptable and now expect the company to focus on putting things right so that customers can regain trust in their water company and the critical service they provide.

"We understand that the public wants to see transformative change. That is why we are prioritising this sector-wide investigation, which is holding companies, like Hafren Dyfrdwy, to account. To date, Ofwat has concluded eight cases in the investigation, resulting in more than £300m in enforcement packages and penalties."

The enforcement package is in addition to the company rectifying any identified breaches so that it has processes in place to ensure future compliance.

Ofwat has published a consultation paper summarising the evidence gathered and setting out its proposed findings in relation to the issues under investigation, including why it believes that Hafren Dyfrdwy has contravened its statutory duties and the obligations of its Licence.

The regulator has launched a public consultation setting out its proposed decision to accept the package before its final decision - deadline to submit responses to the consultation is 5pm on 6 November.

Representations or objections should be sent to the following address:

by email to: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; or

by post to: Enforcement, Ofwat, Centre City Tower, 7 Hill Street, Birmingham, B5 4UA.

Click here to download the consultation paper