Water firm to pay £40m over 'serious failures'

Ofwat said Yorkshire Water had recognised its failures and was taking steps to "put it right"

Yorkshire Water has been ordered to pay £40m to address its "serious failures" over wastewater and sewage.

An investigation by regulator Ofwat found on average the firm discharged untreated wastewater into the region's rivers for seven hours a day in 2023, with almost half its storm overflows found to be in breach of regulations.

The cost of the enforcement package, which would be invested in the region, would not be passed on to customers and instead it would be paid for by the firm and its shareholders, Yorkshire Water said.

The company apologised for its failings and said it had taken active steps to remedy the issues, but chief executive Nicola Shaw said there was "still more for us to do".

'Excessive spills'

Ofwat's investigation, which began in 2021, found the firm had failed to adequately invest in and maintain its networks.

In its conclusion published on Thursday, it said Yorkshire Water had significantly breached its legal obligations, which had caused an "unacceptable impact" on the environment and customers.

Ofwat's senior director for enforcement, Lynn Parker, said: "Our investigation has found serious failures in how Yorkshire Water has operated and maintained its sewage works and networks, which has resulted in excessive spills from storm overflows."

Ms Parker said Yorkshire Water had recognised this failure and was taking steps to "put it right".

"They deserve credit for stepping up and agreeing an enforcement package with us that will help get things back on track as soon as possible," she added.

"If they don't put in place the improvements that they have said they will, then we will step in and take action."

Yorkshire Water's Nicola Shaw apologised for the firm's "past mistakes"

Ofwat said Yorkshire Water had been ordered to pay £36.6m during 2025-30 to prioritise work on some of the most problematic storm overflows in environmentally sensitive areas to ensure they spill less than 20 times a year.

It would also be expected to pay £3.4m to the Great Yorkshire Rivers Partnership, which would be used to clear artificial barriers in rivers, improve water quality and promote biodiversity.

Yorkshire Water's chief executive, Nicola Shaw, said the firm had already completed work at 70 storm overflows and was due to start a £1.5bn programme to reduce discharges even further over the next five years.

She said: "We know there's still more for us to do.

"We apologise for our past mistakes and hope this redress package goes some way to show our commitment to improving the environment."

The BBC previously reported the firm's plans to increase bills by 41% in the next five years.

Ms Shaw, who was paid a £371,000 bonus in 2024, said at the time the price hike would pay for supply upgrades and go towards reducing sewage discharges and storm overflows.

A spokesperson for the Great Yorkshire Rivers Partnership said: "We welcome the additional funding.

"By reinvesting this money in Yorkshire, even more projects will be delivered by Great Yorkshire Rivers partners across the county to support the recovery of our native fish species."

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