South West Water faces £24 million enforcement action for wastewater failures

Water regulator Ofwat has proposed a £24 million enforcement package against South West Water following an investigation that uncovered serious failures in the company’s management of its wastewater treatment works and sewer network. The failures led to illegal discharges of wastewater into the environment.

The package, to be paid by South West Water and its shareholders, will be directed toward environmental and service improvements for the benefit of customers and local ecosystems. The enforcement action follows similar high-profile cases this year involving Yorkshire Water, Thames Water, and Northumbrian Water, which collectively resulted in over £160 million in penalties and remediation.

According to Ofwat, South West Water did not properly build or operate its wastewater treatment facilities and failed to implement effective management systems to ensure compliance with environmental regulations. These deficiencies included a lack of adequate oversight from senior leadership and the company’s Board.

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

“Water companies should be in no doubt that they will be held to account if they fail to meet their legal obligations to customers and the environment. Our investigation found a range of failures in how South West Water has gone about managing its wastewater business. That is why we have secured the £24m package and a commitment to put things right.

“As we continue to progress our sector-wide investigation, we are pleased that companies like South West Water are stepping up to acknowledge their failures and to put things right. We will continue to monitor the company to ensure that this work is carried out as quickly as possible so that customer confidence can begin to be restored.”

South West Water has acknowledged its failings and voluntarily put forward a package aimed at rectifying the damage and improving future compliance. The proposed measures include:

• £20 million investment (2025–2030) to reduce spills from specific storm overflows, particularly in environmentally sensitive or community-priority areas.

• £2 million local fund to tackle sewer misuse and misconnections, which are known to contribute to pollution.

• £2 million Nature Recovery Fund to support local environmental groups working on nature improvement projects.

The company has also committed to taking further steps to correct its operational shortcomings, including ongoing investment in infrastructure and introducing new governance structures to ensure better oversight.

Ofwat is now inviting the public and stakeholders to comment on the proposed enforcement package before a final decision is made. The consultation can be accessed on the Ofwat website: https://www.ofwat.gov.uk/consultations/

Had this agreement not been reached, Ofwat indicates it would have imposed a £19 million financial penalty, equal to 6.5% of South West Water’s annual turnover, payable to HM Treasury. Instead, the agreed £24 million package will remain within the water sector, directly funding environmental and service improvements.

For further details and access to the enforcement documents, visit: https://www.ofwat.gov.uk/regulated-companies/investigations/open-cases/enforcement-cases/