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Dŵr Cymru Welsh Water has been told to spend almost £45 million on improvements to its sewer network after an investigation by industry regulator Ofwat found serious failures.
The not-for-profit company, based near Nelson, breached its legal obligations by failing to properly operate, maintain and upgrade sewage treatment works and sewer infrastructure.
Ofwat said the failures contributed to excessive spills from storm overflows into the environment.
The regulator has proposed that Welsh Water fund £44.7m worth of environmental improvements between 2025 and 2030, including work to reduce sewage spills and improve river water quality.
Costs would be met by the company rather than through higher customer bills.
Of the proposed package, £40.6m would be spent reducing spills at specific storm overflows and tackling groundwater entering the sewer network, while £4.1m would fund improvements to river water quality in environmentally sensitive areas.
The company has also agreed to investigate parts of the sewer network where groundwater infiltration is contributing to frequent overflows.
Lynn Parker, senior director for enforcement at Ofwat, said its investigation had found “serious and unacceptable breaches”.
She added: “We now expect them to focus on putting things right so that customers can regain trust in their water company and the critical service they provide.”
Welsh Water said it accepted the findings and apologised for falling short of standards.
A spokesperson added: “We have started a major transformation programme across the company, including within our wastewater services, focused on improving performance, strengthening operational oversight and accelerating investment to deliver better outcomes for rivers and coastal waters.
“The investigation has considered both historic and more recent compliance, and we accept that improvements are needed. We have already taken steps to strengthen our governance, oversight and compliance arrangements as part of a wider transformation programme across the business.”
A consultation into the proposed enforcement has opened before Ofwat makes the enforcement final.
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