Severn Trent avoids fine despite 'serious' wastewater failings

(Sharecast News) - Severn Trent Water had "serious failings" in how it dealt with drainage and sewage, the regulator confirmed on Wednesday following its latest wastewater probe.

Ofwat said the blue chip utility, which provides water and drainage services to around 8m people in the Midlands and parts of Wales, had breached its duties. In particular, it found it had failed to effectually provide drainage and deal with the contents of its sewers. It also historically breached requirements of its licences to have in place adequate processes and systems to meet those duties.

However, Severn Trent has escaped any financial penalty, in recognition of the company identifying and seeking to correct the failures ahead of Ofwat opening the enforcement case in July 2024.

Lynn Parker, senior director for enforcement at the watchdog, said: "Our investigation found serious and unacceptable breaches by Severn Trent - that is not in question and the company accepts it.

"But their response to those failures sets a standard we expect from all companies: identifying the problem, proactively investing to fix it, and cooperating openly with the regulator."

James Jesic, chief executive of Severn Trent, said: "We're delivering a significant storm overflow spills reduction programme and Ofwat has recognised this in today's decision.

"We accept Ofwat's findings. By monitoring and investing to put things right, we are now seeing the benefits, including reducing average storm overflow spills by 41% in 2025."

Ofwat said the company had so far invested �98m in direct infrastructure improvements.

As at 1000 BST, the stock was off 2% at 2,944p.

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