Wessex Water to pay £11m towards wastewater upgrades after Ofwat investigation
The investment means the firm with around 2.9 million customers in the South West avoids having to pay a fine.
Wessex Water will pay £11 million toward upgrades after the industry watchdog found it failed to properly manage its wastewater network.
The water company, which serves around 2.9 million customers in the South West, was made to pay the enforcement package by regulator Ofwat.
By agreeing to the extra investment in its network, the firm avoids having to pay a fine.
It will be paid for by shareholders and not through customer bills, the watchdog confirmed.
Wessex Water failed to operate, maintain and upgrade its network to ensure it could cope with flows of sewage and wastewater, Ofwat found in its investigation.
The investment package will go towards a series of upgrades, including helping private landowners to seal their sewer pipes to avoid unnecessary groundwater reaching its network, and bringing forward investment into reducing spills at specific storm overflow areas.
Money will also be spent on installing monitoring equipment and helping customers to sustainably manage rainwater at their properties.
Ofwat said Wessex was the sixth case it had completed in its wider wastewater investigation, which has resulted in £250 million in fines and enforcement packages.
Lynn Parker, senior director for enforcement at Ofwat, said: “These cases are a crucial part of holding water companies to account and driving the transformation of the water sector that the public wants to see.”
Wessex Water had said it “regrets the impact our wastewater performance has had on customers and the environment”.
The company said the investment package “will tackle the problem directly” and that it was planning to invest £300 million in its sewerage infrastructure by 2030.
