South West Water (SWW) is facing a proposed £24 million enforcement package from water regulator Ofwat, following what it has described as its “largest and most complex set of investigations”.

The proposed enforcement package follows findings from Ofwat that SWW “has failed to meet its legal obligations in managing its wastewater treatment works and network. These failures resulted in the company spilling wastewater to the environment when it should not have done.”

The announcement from the water regulator represents the next stage of Ofwat's investigations into all water companies and their management of wastewater treatment works. It follows the conclusion of cases against Yorkshire Water, Thames Water and Northumbrian Water earlier this year that resulted in enforcement action worth more than £160 million.

Ofwat’s investigation found that South West Water had failed to build and operate its wastewater treatment works and sewer networks to ensure they performed sufficiently.

The company did not have in place adequate management systems to ensure it was meeting its legal obligations in this regard, including proper oversight from its senior management team and Board.

Ofwat has said SWW has acknowledged what has gone wrong and how it will put things right. South West Water has proposed a £24 million enforcement package which includes:

  • Investing £20 million during 2025–30 to reduce spills from specific storm overflows. This investment will target overflows in environmentally sensitive areas or within focused community areas.
  • Establishing a £2 million local fund to tackle sewer misuse and misconnections, which can contribute to environmental pollution.
  • Providing £2 million of funding through a Nature Recovery Fund to support environmental groups in delivering local environmental improvements.

In addition, the company will commit to taking the necessary steps to address the failures Ofwat has identified, securing its future compliance.

Lynn Parker, Senior Director for Enforcement at Ofwat, said: “Water companies should be in no doubt that they will be held to account if they fail to meet their legal obligations to customers and the environment. Our investigation found a range of failures in how South West Water has gone about managing its wastewater business. That is why we have secured the £24 million package and a commitment to put things right.

“As we continue to progress our sector-wide investigation, we are pleased that companies, like South West Water, are stepping up to acknowledge their failures and to put things right. We will continue to monitor the company to ensure that this work is carried out as quickly as possible so that customer confidence can begin to be restored.”

Ofwat states that South West Water has already taken some steps to address its compliance issues. These include investment to investigate and improve the operation of a range of its treatment works and storm overflows, and the introduction of new governance arrangements to ensure greater oversight of its compliance with environmental obligations.

A consultation is now open to the public and stakeholders to offer any final comments on Ofwat's proposed decision before it is finalised. The consultation can be found here: https://www.ofwat.gov.uk/consultations