Ofwat To Investigate Southern Water Over Sewage Pollution

Ofwat is set to investigate Southern Water alongside 10 other water firms in England and Wales over concerns about sewage spills and their potential impact on the environment.

This extensive probe aims to determine whether these companies have failed to meet their legal obligations in sewage treatment, potentially resulting in pollution.

David Black, Ofwat’s chief executive, highlighted the gravity of the situation, stating, “The fact that Ofwat now has enforcement cases with all 11 of the wastewater companies in England and Wales demonstrates how concerned we are about the sector’s environmental performance.”

The Government has also expressed its support for Ofwat’s actions, with Prime Minister Sir Keir Starmer and Environment Secretary Steve Reed emphasising the need for significant reforms to address sewage pollution.

The news comes after Southern Water handed its boss a £183,000 bonus. Chief Operating Officer Lawrence Gosden’s total pay will be bumped up to £764,000.

The company recorded a £210million loss this year and was fined £330,000 in February for raw sewage dumps killing 2,000 fish in a river near Southampton.

Southern Water justified the bonus saying it had made a reduction in overall pollution numbers. A spokesperson for the company said the bonuses will be paid for by shareholders and not customers and were awarded on the basis that there were “significant advances in treated water quality, a reduction in overall pollution numbers and falling customer complaints”.

“Having declined a bonus last year, Southern Water’s CEO and CFO will receive a partial bonus in 2024, paid by shareholders rather than from customers’ bills, after the board’s remuneration committee acknowledged progress made in delivering on the company’s ambitious Turnaround Plan," he said.