(Reuters) -Shares in British water firms United Utilities and Severn Trent fell after a water regulator on Tuesday opened enforcement cases into them, as well as two others, as part of its ongoing probe into wastewater management.
United Utilities and Severn Trent were among the top percentage losers on the blue-chip FTSE 100 index, falling about 1.5% and 1% respectively in early trading.
The regulator said it has also served notices to Dŵr Cymru Welsh Water and Hafren Dyfrdwy, a unit of Severn Trent, to gather evidence for the investigation.
Ofwat, which regulates the privatised water and sewerage industry in England and Wales, said the new cases were opened after analysing data on how often these companies spill from storm overflows amid “heightened” concerns that the firms might not be fulfilling their obligations to minimise pollution.
In 2021, Ofwat launched an industry-wide probe into how companies manage their wastewater assets, and now has 11 water and wastewater companies under the purview of its probe.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Nivedita Bhattacharjee)
