Thames Water investigated by Ofwat over delays in environmental improvements

Thames Water is being investigated by the water regulator for England and Wales after the struggling company delayed environmental improvement schemes.

- Helena Horton Jasper Jolly

Ofwat launched the investigation after the Guardian revealed that the UK's largest water company intentionally diverted millions of pounds pledged for environmental cleanups towards other costs, including bonuses and dividends.

An enforcement case was opened to decide whether the company breached its obligations in failing to deliver 100 of 812 schemes between 2020 and 2025.

These environmental measures are part of the water industry national environmental programme (Winep) and include protecting and enhancing rivers, upgrading sewage systems to reduce spills, cutting the amount of water abstracted from rivers and improving the safety and quality of designated bathing sites.

Water companies have to deliver these on time as part of their statutory requirements or can face fines. The Winep deal is a condition for water companies to be able to increase bills.