South West Water will pay a £24m penalty for illegal sewage discharges into the environment instead of being fined £19m by Ofwat, the regulator for the water and wastewater sector in England and Wales.
The penalty is due to the company's breach of legal permit conditions, with the company planning to invest £20m in reducing sewage discharges at storm overflows, £2m in tackling sewer misuse, and an additional £2m to support local environment groups as part of the agreement with Ofwat.
Surfers Against Sewage expressed discontent, labeling the water industry model as broken and criticizing the regulator for allowing water companies to select their penalties.
Ofwat chose to accept the investment proposal by South West Water instead of imposing a fine as it believes the company will carry out the required work to rectify its infrastructure issues; the public and stakeholders can provide input on the penalty size before Ofwat's final decision.