LONDON (Reuters) -British water regulator Ofwat said it would investigate Thames Water over delays to hundreds of environmental improvements to determine whether the struggling utility had breached its obligations which could result in fines.
The regulator said Thames Water had committed to deliver 812 environmental improvement schemes over the 2020-2025 period but had informed it recently that it would be unlikely to deliver more than 100 of them on time.
It said on Wednesday it would open an enforcement case, which could result in the company being fined millions of pounds if it is found at fault.
Thames, the country’s biggest water supplier, which has 18 billion pounds ($22.4 billion) of debt, is waiting for a court to approve a debt lifeline in the coming days, without which it has warned it will run out of cash by the end of March.
It is at the centre of a public backlash against Britain’s failing water sector, blamed for polluting rivers and seas with sewage, amid accusations that profit has been prioritised over the environment.
“Customers have paid for Thames Water to carry out these essential environmental schemes,” Ofwat senior director Lynn Parker said. “We take any indication that water companies are not meeting their legal obligations very seriously.”
Thames Water said it had been open about the challenge of delivering the improvements on time.
“Customers will not pay twice for investment that has already been funded through customer bills,” a spokesperson said. “We remain committed to delivering all our Water Industry National Environmental Programme commitments.”
Ofwat added that the opening of a case did not imply that the company had breached its obligations and it would publish its findings after completing an investigation.
Last August, Ofwat proposed fining Thames Water 104 million pounds for failing to manage its wastewater and treatment works following a previous enforcement case.
($1 = 0.8035 pounds)
(Reporting by Sarah Young; editing by Paul Sandle and Louise Heavens)
