Thames Water has been slapped with £120M worth of fines in relation to leakage failures.
Water regulator Ofwat has confirmed that Thames Water will pay £65M back to its customers as part of the total package of penalties.
It comes after Oftwat ruled that the water provider was shirking its legal responsibility to reduce leakage.
The watchdog ruled that “Thames Water’s Board did not pay enough attention to reducing leakage and underestimated its legal responsibility for oversight of its leakage operations and the responsibilities of its Board”.
Ofwat chief executive Rachel Fletcher said: “The action we have taken against Thames should help to deliver important improvements for customers and the environment.
“The formal undertakings from Thames Water to improve its Board’s oversight and determination to get on top of leakage are an important commitment because the failures we found were failures of leadership. Thames Water has now accepted that it needs to address this head-on and we will monitor closely how it does so.
“This case provides important lessons for all water companies about Board leadership and assurance of their statutory obligations – it is another reminder that, if companies fall short, we will step in.”
Around 3bn.l of water is lost in England per day through leaking infrastructure.
Following the investigation, Thames Water has committed to getting its leakage performance back in line with what it has promised it will deliver for its customers in 2019-20 and to plan to reduce leakage by a further 15% by 2025.
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