Britain's biggest water firm hit with record fine over sewage and dividends

Britain’s biggest h2o institution has been fined astir 123 cardinal pounds oregon $166 cardinal for releasing sewage into rivers and streams portion paying dividends to its shareholders

LONDON -- Britain’s biggest h2o institution was fined astir 123 cardinal pounds ($166 million) connected Wednesday for releasing sewage into rivers and streams portion paying dividends to its shareholders.

Industry regulator Ofwat said that Thames Water indispensable wage 104.5 cardinal pounds for failing to support the environment, and 18.2 cardinal pounds for breaking rules related to dividend payments. It's the biggest-ever punishment levied by the h2o watchdog.

Ofwat said that the company, which provides h2o and sewage services to 16 cardinal radical successful and astir London, failed “to build, support and run capable infrastructure to conscionable its obligations” and besides paid “undeserved dividends.”

The U.K. authorities said that the fines “will beryllium paid by the institution and its investors, and not by customers.”

Thames Water is astatine the halfway of nationwide choler implicit sewage spills that person fouled lakes, rivers and beaches astatine a clip erstwhile h2o and sewage companies are hiking bills to modernize aging systems and header with the demands of clime alteration and colonisation growth.

The cash-strapped institution has teetered connected the borderline of insolvency nether astir 19 cardinal pounds successful debt. It won tribunal support successful March for 3 cardinal pounds successful emergency funding to support it from falling into authorities administration.

It is presently trying to propulsion done a merchantability to U.S. concern steadfast KKR.

Consumers and politicians person criticized the company, arguing that Thames Water created its ain problems by paying overly generous dividends to investors and precocious salaries to executives portion failing to put successful pipelines, pumps and reservoirs. Company executives accidental that the responsibility lies with regulators, which kept bills excessively debased for excessively long, starving the institution of captious currency to money improvements.

“We instrumentality our work towards the situation precise earnestly and enactment that Ofwat acknowledges we person already made advancement to code issues raised successful the probe relating to tempest overflows,” Thames Water said successful a statement.

“The dividends were declared pursuing a information of the company’s ineligible and regulatory obligations. Our lenders proceed to enactment our liquidity presumption and our equity rise process continues.”

Sponsored Content by Taboola