United Kingdom. A place of attraction for millions of music lovers, for those who love absolute Christmas destinations like London, but also for many an opportunity to connect with nature. It is typical that the country has almost 1500 rivers, while the city of Birmingham could be considered as magical as Venice, as it has more canals than the famous Italian city.

However, reality quickly overturns conclusions such as the above: “No river section in England and Northern Ireland is generally in good condition” is the characteristic conclusion of the latest report of one of the country’s largest environmental organizations, the Rivers Trust. This finding was simply the seal of dozens of complaints, over the years, about the quality of the country’s rivers and seas, not only by environmentalists but also by British citizens who use the rivers for several activities.

The current decision of the regulatory authority, however, comes to add an additional burden to water providers. In particular, Ofwat decided to impose a fine of £168 million on three of the country’s largest providers: Thames Water, Yorkshire Water and Northumbrian Water.

The reason for the “stingy” fines

The amount of fines is calculated according to the violations. Thames Water, which is also the UK’s largest provider, is expected to incur £104m, Yorkshire Water £47m and Northumbrian Water £17m. The amount of the penalties is subject to a public consultation, which is expected to have a final date of September 10, so it is possible that these amounts may even change upwards.

Among other things, in its official statement the regulator Ofwat spoke of “failure to manage wastewater treatment projects and networks” by the three water providers, with the authority’s chief executive David Black referring to a “list of failures”, where according to “the our investigation were releasing sewage into our rivers and seas, rather than ensuring that this only happens in prominent cases, as the law requires.”

It is one of the agency’s biggest investigations, with eight other water and sewerage companies in England and Wales under scrutiny for similar problems and breaches. The results are expected from next year.

Where will the money come from?

According to Ofwat the penalties that will be imposed must be paid by the shareholders of the companies and not from the customers’ accounts. However, already within the next five years customers will see their water bills rise by up to £20 a year. For example, Thames Water had proposed a total increase of £191 by 2030, with the regulator agreeing to £99. This is a 44% increase with the aim, as the companies state, to improve their infrastructure.

On the other hand, environmental organizations have made known their concern, that customers’ money is not invested enough to upgrade the system but several times to satisfy shareholders through exorbitant bonuses, which is why they are asking for their ban. According to the BBC, the government is trying to take measures to ensure that the money intended for upgrading the network will not be given to pay rises or dividends.

Environment Minister Steve Reid welcomed the Authority’s intervention, while declaring that “those responsible for the unacceptable destruction of waterways will face the consequences”. An example of exorbitant bonuses is that of the chairman of Southern Water, who according to a report in the Financial Times just three weeks ago, received an extra £183,000 after proposing a 73% rise in bills over the next five years.

It is important to mention the financial situation in which these companies are. Thames Water is barely surviving financially as according to its latest financial report, it has almost £15bn of debt and is only available to cover its needs until May 2025.

Water pollution is a problem

Most of the British media are talking about “historic sewage spills”, with the overflow rate in England’s rivers and seas having more than doubled in the past year. For 2023, 3.6 million hours of leaks are recorded compared to 1.75 million hours in 2022, i.e. 1,271 leaks per day.

Spills involve human waste, wet wipes and hygiene products. They endanger wildlife, swimmers and waterway users. The Association of Water and Sewerage Companies (Water UK) has called on the Government to speed up the process for a complete ban on wet wipes as, among other things, they block drains.

At the same time, the high levels of sewage leakage are also based on operational issues of their treatment, which highlight that the network is not properly maintained. Significantly, 67% of Thames Water’s sewage treatment works are experiencing problems, both in capacity and in operation.

Zoe Katzagiannakis, London