Anglian Water is set to pay a substantial £62.8 million redress package after a damning investigation by the UK water regulator Ofwat revealed serious failures in managing its wastewater treatment network. The enforcement action comes amid growing public outrage over sewage spills polluting rivers and waterways, and adds to a series of penalties levied against water companies across England this year.
Ofwat’s probe, which spanned several years, found that Anglian Water — responsible for supplying nearly seven million customers in the East of England — had systematically failed to operate, maintain, and upgrade its sewage works and infrastructure adequately. These shortcomings led to what the regulator described as “excessive spills from storm overflows,” where untreated sewage is discharged into rivers, a practice deemed both illegal and environmentally damaging.
Lynn Parker, Ofwat’s senior director for enforcement, underscored the severity of the situation: “Our investigation has found failures in how Anglian Water has operated and maintained its sewage works and networks, which has resulted in excessive spills from storm overflows. This is a serious breach and is unacceptable.” She further emphasized that the public demands transformative change, and that holding companies accountable is essential to restoring confidence in the water sector.
The £62.8 million package, which Anglian Water and its shareholders will fund, includes a £57 million investment aimed at reducing water pollution across at least eight catchment areas within the company’s region. This initiative will focus on improving wastewater flows and upgrading storm overflow systems to prevent future spills. Additionally, £5.8 million will be allocated to a community fund designed to support local environmental and social projects, fostering restoration and engagement in affected areas.
This enforcement action allows Anglian Water to avoid a formal financial penalty that would have otherwise amounted to £57.1 million — equivalent to 6.5% of its relevant turnover. Ofwat described the redress package as a more constructive approach, delivering better outcomes for both customers and the environment.
Anglian Water’s troubles are part of a broader pattern of regulatory scrutiny facing the UK water industry. Earlier this year, South West Water agreed to pay £24 million, while Yorkshire Water and Northumbrian Water faced penalties of £40 million and £15.7 million respectively. Thames Water, the country’s largest water supplier, was hit with a record £104 million fine. These enforcement actions follow a landmark investigation launched in 2021 by Ofwat and the Environment Agency into whether water companies were routinely failing to meet their environmental permits concerning sewage discharges.
Since 2017, Anglian Water’s management of its sewage treatment works has been underwhelming. In 2021 alone, 56% of outfalls at its wastewater treatment plants discharged raw sewage into waterways at least 20 times, with 21% spilling more than 60 times, indicating routine rather than isolated incidents. Many of these spills were attributed to operational failures and inadequate asset maintenance, issues that were not swiftly rectified. Furthermore, the company lacked up-to-date records on the capacity of its storm tanks, critical infrastructure designed to prevent sewage overflow during heavy rainfall. Surveys revealed that 16% of its treatment works still operated with tanks smaller than permit requirements.
Environmental concerns extend beyond spill incidents. Anglian Water recorded 11 serious pollution incidents in both 2022 and 2023, exceeding its own targets, and has faced over ten prosecutions by the Environment Agency since 2019 for pollution offenses. These ongoing problems have even led to the company’s chief executive, Mark Thurston, being barred from receiving a bonus this year under new government legislation aimed at holding executives accountable for environmental performance.
Mark Thurston acknowledged the company’s failings and the need to regain public trust. “We understand the need to rebuild trust with customers and that aspects of our performance need to improve to do that,” he said. “Reducing pollutions and spills is our number one operational focus, and we have both the investment and the partners in place to deliver on those promises as part of our £11 billion business plan over the next five years.”
Among the planned investments, Anglian Water has earmarked £1 billion by 2030 for measures including the construction of storm tanks, upgraded monitoring systems, nature-based solutions such as wetlands, and sustainable drainage systems. These initiatives aim to halve the number of sewage spills in the coming years.
The timing of this enforcement package coincides with significant regulatory reforms in the UK water sector. Earlier in July 2025, the government announced plans to abolish Ofwat and merge it with parts of the Environment Agency to form a new “super-regulator” tasked with better protecting rivers, seas, and public interests. This move follows a comprehensive review led by Sir John Cunliffe, which concluded that the existing regulatory framework was failing consumers, the environment, and industry alike.
Household water bills have risen by an average of £10 per month this financial year as the sector embarks on a multi-billion-pound infrastructure upgrade to address longstanding underinvestment. Environment Secretary Steve Reed has described the UK’s water system as “broken,” citing years of neglect that have led to soaring pollution incidents and vulnerability to climate change impacts such as droughts and extreme weather.
The public backlash against sewage pollution has been fierce, with images of toilet paper, wet wipes, and sanitary products washing up on riverbanks sparking outrage in communities like Market Harborough. Local officials, such as Cllr Darren Woodiwiss, the Green Party portfolio holder for Climate Change and Neighbourhood Services in Harborough District Council, have voiced concern over the environmental damage and the need for urgent action.
Anglian Water has committed to accelerating investments at high-risk sites and implementing long-term plans to minimize storm overflow spills. The company emphasizes that the redress package is entirely funded by shareholders, ensuring customers will not bear the financial burden.
While the enforcement package represents a significant step toward addressing Anglian Water’s failings, it also highlights the broader challenges facing the UK’s water industry. With climate change intensifying weather extremes and increasing pressure on aging infrastructure, the sector faces a critical juncture. The new regulatory framework and substantial investments planned over the next decade aim to turn the tide, but the journey toward cleaner, safer waterways and restored public trust will require sustained commitment and vigilance.
