Thames Water hit with largest-ever fine from Ofwat

THAMES Water has been fined £122.7million after two investigations into wastewater and dividend payments - the largest penalty Ofwat has ever issued, the regulator said.

- By ALEX DANIEL PA Business Reporter

The utility giant will pay £104.5m for breaches of rules relating to its wastewater operations, after Ofwat said it "failed to protect the environment". Ofwat chief executive, David Black said: "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."

Thames Water will pay an extra £18.2m for breaking rules related to dividend payments, the first ever dividend-related fine in the industry, Ofwat said.

The watchdog pointed to dividends of £37.5m in October 2023 and £131.3m in March 2024.

The firm is currently in a "cash lock-up" period and no more dividends can be paid without approval from the regulator.

Mr Black said: "We will not stand by when companies pay undeserved dividends to their shareholders."