Anglian Water and South West Water fined £86.8m over sewage failures

Two water companies have been fined a combined £86.8 million over sewage-related failures.

Industry watchdog Ofwat - which is set to be scrapped as part of a shake-up of oversight in the sector - said Anglian Water and its shareholders faced a redress package of £62.8 million.

The penalty for South West Water stood at £24 million.

The pair are the latest firms to face financial consequences for breaching obligations in the operation of their wastewater treatment works and networks.

Ofwat said that both failed to operate, maintain, and upgrade their wastewater assets adequately to ensure they could cope with flows of sewage and wastewater.

The reports also criticized the processes and management at the companies, including board level oversight.

The regulator said its five wastewater investigations concluded this year had resulted in enforcement action worth more than £240 million.

Much of the cash goes towards storm drain improvements and local projects aimed at restoring river ecosystems.

Lynn Parker, senior director for enforcement at Ofwat, said: "Our investigations found failures in how Anglian Water and South West Water have operated and maintained their sewage works and networks, which has resulted in excessive spills from storm overflows.

"These are serious breaches and are unacceptable.

"We understand that the public wants to see transformative change.

"That is why we are prioritizing this sector-wide investigation, which is holding wastewater companies to account for identified failures.

"We are pleased both companies have accepted that they got things wrong and are now focusing on putting that right, and taking action to come back into compliance."

Household bills are on the rise, at inflation-busting rates, over the next five years as the industry - including cash-strapped Thames - scrambles to make the necessary improvements to its infrastructure.

The major creditors at Thames are currently trying to convince the government and Ofwat of their operational and ownership plans to take control of the business through a new vehicle called London & Valley Water.

Firms are also under pressure to save more water, through leak prevention and improved storage capacity, as climate change presents challenges in terms of extremes.

While storm drains have been unable to cope with vast volumes associated with heavier storms, rainfall has been scarce since spring with the UK seeing its hottest summer on record.

Reservoir stocks are below average levels for this time of year widely, and hosepipe bans remain in force across many areas of England, especially in the East.