Thames Water discovers 312 storm overflows it didn't know it had

Three of England's biggest water companies are facing multimillion pound fines for dumping sewage, as ITV News Business and Economics Editor Joel Hills reports

The Brixton Storm Relief Sewer sits at the foot of the MI6 building on the banks of the river Thames. 

Last year, this storm overflow spilt raw sewage into the river 130 times - roughly one discharge every three days. 

Water companies are permitted to dump sewage in “exceptional” circumstances. Still, Ofwat has decided that Thames Water has been doing so routinely since 2017 because it has failed to properly manage its network of sewers and treatment works.

Some 39% of Thames Water’s storm overflows “spill” more than 20 times a year - the level the regulator considers to be excessive.

In 2020, it was 49%.

Ofwat fined three companies for sewage discharges on Tuesday but Thames Water is the worst offender.

The regulator’s investigation said Thames Water has consistently failed to monitor, operate, maintain, repair and upgrade its assets.

The report highlights a lack of investment but also a lack of care and curiosity within the company - including at the board level.

The investigation reveals that in 2022, Thames Water informed Ofwat it had discovered 312 storm overflows it didn’t know existed and hadn’t been monitoring. 

Thames Water owns and operates 236 water treatment facilities, 157 are performing so poorly that Thames Waters considers them to be “sites of concern”.

Untreated sewage is being discharged because these plants cannot cope with the volume of wastewater they need to process.

Many of the plants are not running at capacity because of what the regulator says is a combination of human error and equipment that is either poorly maintained or needs replacing.

Water companies have faced a series of regulatory and legal actions since it became clear that they have been releasing unknown quantities of wastewater into national waterways, putting the environment and human health at risk. 

The Environment Agency is conducting its largest-ever criminal investigation. 

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Last month, the Supreme Court ruled that individuals can seek compensation for the sewage that has been released. 

Ofwat has fined Thames Water £104 million and there may be more fines to come. It has also proposed an “enforcement” order which compels Thames Water to detail how it will improve its network. 

Thames Water says it “takes this matter very seriously", adding: “We regard all untreated discharges are unacceptable, even when they are permitted.”

The company can appeal the fine and it needs the money.

The infrastructure is creaking and needs upgrading.

Last month, Thames Water said it had enough cash to last until next May, by which time it needs to raise £750 million from investors.

If it can’t, the company may be taken into “special administration”, a form of temporary nationalisation. 

Despite the company’s poor performance, Chris Weston, who became chief executive in January, is set to receive a bonus of £195,000 for the first three months of this year. 

Ofwat is reviewing whether or not to intervene to prevent Thames Water from paying the bonus using money raised from water bills. 

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