REG - Water Services Auth - Severn Trent in breach of wastewater obligations

RNS Number : 3950L Water Services Regulation Authority 08 July 2026  

Wednesday 8th July 2026

OFFICIAL - SENSITIVE

Ofwat finds Severn Trent Water in breach of wastewater obligations

·      Severn Trent Water found to have had serious failings in its duties to deal effectively with wastewater and sewage.

·      Severn Trent Water proactively identified problems and shareholders invested £98m towards fixing the issues - before Ofwat opened its enforcement case.

·      Average spills from storm overflows reduced by 41% year on year in 2025, with Severn Trent Water consistently performing better than other wastewater companies.

Ofwat has formally accepted an enforceable package of undertakings from Severn Trent Water to ensure the company returns to compliance. Ofwat has determined that a financial penalty would not be appropriate in this case. This concludes the eighth case in Ofwat's sector-wide wastewater investigation which has so far secured enforcement packages and fines of more than £300m.

Ofwat's investigation found that Severn Trent Water breached its duties, failing to effectually provide drainage and deal with the contents of its sewers. The company was also found to have historically breached requirements of its licence to have in place adequate processes and systems to meet those duties. While it now has the right processes in place, the company is required to rectify all outstanding issues and ensure future compliance with regard to their network.

In contrast to the seven preceding cases, Severn Trent Water proactively identified problems in its own network and began putting them right before Ofwat opened an enforcement case against the company in July 2024. The company's shareholders have already invested £98m in direct infrastructure improvements because the company recognised its obligations and acted on them. From the outset of the investigation, Severn Trent Water cooperated fully and was able to evidence both its failures and the concrete steps it has taken and will take in future to address them.

Severn Trent Water has taken ownership of the problem, has been proactive in identifying and addressing issues with its wastewater assets and ambitious in its approach, with visible benefits already being in place.

The £98m of shareholder-funded investment has included additional capacity at 65 wastewater treatment sites, Flow to Full Treatment and storm tank enhancements, increased storage at storm overflows, and £26m of nature-based solutions in the Mansfield area. This forms part of an ambitious spills reduction programme launched in 2024 which will take them beyond current licence requirements

The impact of this investment is clear in the data: the company achieved a 41% year-on-year reduction in spills per storm overflow in 2025 (compared to the same data in 2024), despite experiencing heavier rainfall than some other regions, and has been a consistent higher than average performer on this measure throughout the investigation period.

Lynn Parker, Senior Director for Enforcement at Ofwat, said:

"Our investigation found serious and unacceptable breaches by Severn Trent Water - 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.

"The 41% reduction in spills we are now seeing is what genuine accountability looks like in practice. We will always act where companies fail their customers and the environment. But we will also be clear, publicly, when a company does the right thing."

Two cases in Ofwat's sector-wide wastewater investigation remain open.

ENDS

Notes for editors

·    You can find a link to the relevant enforcement documents here: Enforcement cases - Ofwat

·    Severn Trent Water remains in breach of the Urban Wastewater Treatment Regulations and Section 94 of the Water Industry Act. Unlike the seven preceding cases, it has resolved the compliance issues with Condition P of its licence relating to having adequate resources and systems of planning and internal control (including oversight by senior management and the Board) to ensure assets are performing adequately.

·    Ofwat found that Severn Trent Water were consistently performing better in the average number of spills per storm overflow as can be seen in the below table which sets out the company's spills data 2021 - 2025:

·    Ofwat also found that the quality of Severn Trent's data regarding its EDM operation was significantly higher than the sector average.

·    This is the eighth case Ofwat has closed with the outcomes of each case so far listed in the table below*.

* Southern Water was subject to a separate investigation in 2019, resulting in a £126m penalty and enforcement package.

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