Thames Water given record fine by regulator
Ofwat is insisting customers won't be paying for it.
Last updated 28th May 2025
Regulator Ofwat's handed its biggest ever fine to Thames Water - and insisted customers won't be paying for it.
The 123-million pound punishment concerns two investigations into waste operations and dividend payouts.
The utility company was found to have caused an "unacceptable impact on the environment" at its treatment works and on its sewage network.
The fines will be paid by the firm and its investors.
'Series of failures'
David Black, chief executive at Ofwat, said: "This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment.
"Our investigation has uncovered a series of failures by the company to build, maintain and operate adequate infrastructure to meet its obligations.
"The company also failed to come up with an acceptable redress package that would have benefited the environment, so we have imposed a significant financial penalty.
"This decision provides certainty for the company for both its past failures and what we expect from the company to comply with its obligations in future.
"The company is seeking new buyers to fund its turnaround to provide better services for customers and the environment by improving operational performance and financial resilience.
"This provides a clear opportunity to break with the past, Thames Water will now need to correct the issues our investigation has identified."
Wastewater breaches and breaking dividend payment rules
Ofwat said Thames Water would pay £104.5 million for wastewater breaches - the largest fine imposed by the watchdog - and a further £18.2 million for breaking rules relating to dividend payments.
It said the fines would be paid "by the company and its investors and not by customers".
The fines follow what Ofwat called its biggest and most complex investigation of wastewater operation, management and maintenance of sewage treatment works and sewerage networks across the sector.
Thames Water: taking environmental responsibility seriously
A Thames Water spokesperson said the company takes its environmental responsibilities "very seriously" after regulators issued their biggest ever fine to the company over wastewater.
The spokesperson said on Wednesday: "We take our responsibility towards the environment very seriously and note that Ofwat acknowledges we have already made progress to address issues raised in the investigation relating to storm overflows.
"The dividends were declared following a consideration of the company's legal and regulatory obligations.
"Our lenders continue to support our liquidity position and our equity raise process continues."