Ofwat raises ‘serious concerns’ over Yorkshire Water’s sewage treatment

The firm was one of five water providers to submit reports which worried the regulator.

Yorkshire Water, which said it takes its ‘commitment to care for the environment very seriously’ - has also been served with a formal notice so Ofwat can gather further information for enforcement purposes.

The move came after Ofwat and the Environment Agency announced investigations into all water and wastewater companies in England and Wales back in November 2021. This was after several water companies explained that they might not be treating as much sewage at their wastewater treatment works as they should be, and that this could be resulting in sewage discharges into the environment at times when this should not be happening.

The firms were asked to submit information about how many of their sewage treatment works might not be meeting the requirements laid out in their environmental permits, and what they were doing to resolve that.

Following analysis of the information, Ofwat issued formal notices to Yorkshire Water, along with Anglian Water, Northumbrian Water, Thames Water and Wessex Water.

Ofwat interim boss David Black said: “The data that emerged at the end of last year suggested widespread shortcomings in how water companies were running sewage treatment works. The first phase of our investigation suggests those concerns are credible. We have identified shortcomings in most water and wastewater companies and are continuing to investigate.

“But we have already seen enough in five companies to cause serious concern and warrant us taking further action.”

Ofwat said that the information it was sent in December raised one of several concerns for each company: either it reported a large number of wastewater treatment works which might not be meeting their environmental rules, raised concerns about how the company meets environmental obligations, or did not show the company’s workings.

Mr Black added: “We will now dig deeper into what these five companies have been doing, with the prospect of formal enforcement against them if we find they are failing on obligations Ofwat enforces. We will have further questions for all companies on this. In the meantime, we expect them to make quick progress in addressing any potential non-compliance they might have, whilst strengthening how they manage their environmental obligations as a whole.”

While the Environment Agency is investigating potential breaches of environmental law, Ofwat is looking at companies’ compliance with their statutory duty to provide a wastewater treatment system. Ofwat has also asked the boards of each water company to explain how environmental performance and compliance with their obligations has been taken into account when deciding on paying out dividends and executive bonuses.

Ofwat’s enforcement powers can see companies fined up to 10% of their annual turnover.

Emma Howard Boyd, chairman of the Environment Agency, said: “Any water companies in breach of their permits are acting illegally. Only now, just before new monitors are installed, have companies reported concerns over potential problems. The EA has begun an immediate investigation of 2,480 sewage treatment works and will prosecute where necessary. The private sector is under increasing pressure to demonstrate the tangible commitments on protecting the environment. This shows why we need robust and well-funded regulation.”

A statement from Yorkshire Water said: “We take our commitment to care for the environment very seriously. We will of course be cooperating fully with the investigation and it would be inappropriate to comment any further while it is ongoing.”