Thames Water is set to be hit with a record £123m fine by the water regulator for breaches linked to its wastewater operations and dividend distributions.
Ofwat has reached a final verdict on Tuesday after conducting two of its "biggest and most complex" probes into the troubled water company's practices, as reported by .
The watchdog has imposed a £104.5m penalty on Thames Water for a "significant" violation of its legal duties concerning wastewater, which resulted in an "unacceptable impact on the environment and customers," according to Ofwat.
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An additional sum of £18.2m will be levied against the firm for contravening regulations around dividend payments.
Ofwat has clarified that the fine will be borne entirely by Thames Water and its shareholders, not by its customers.
Chief executive David Black said the case for the two fines, which came despite protests from Thames Water executives, was "clear-cut."
"Our investigation has uncovered a series of failures by the company to build, maintain and operate adequate infrastructure to meet its obligations."
He further commented: "The company also failed to come up with an acceptable redress package that would have benefited the environment, so we have imposed a significant financial penalty."
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A representative for Thames Water remarked: "We take our responsibility towards the environment very seriously and note that Ofwat acknowledges we have already made progress to address issues raised in the investigation relating to storm overflows.
"The dividends were declared following a consideration of the company's legal and regulatory obligations."
stated a spokesperson, who also added: "Our lenders continue to support our liquidity position and our equity raise process continues."
Thames Water can 'break from past'
Thames Water is striving to break away from its past as it battles a crisis over sewage leaks and a debt pile exceeding £18bn.
The 海角视频's largest water supplier appears poised to fall into the hands of US private equity behemoth KKR, currently its "preferred bidder."
Thames Water has been subjected to intense criticism for maintaining substantial bonus and dividend payouts despite its financial troubles and escalating sewage spills.
Chairman Sir Adrian Montague was compelled to retract his statement earlier this month after he informed MPs that creditors had demanded bonuses be carved out of a £3bn emergency loan earlier this year. In reality, it was revealed that Thames Water executives had advocated for the payout.
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Last week, the government announced a record 81 criminal investigations have been initiated against water firms in the 海角视频.
Environment Secretary Steve Reed declared on Tuesday that it was the "toughest crackdown on water companies in history. The era of profiting from failure is over. The government is cleaning up our rivers, lakes and seas for good."
Ofwat's enforcement action regarding dividend payments marks another first for the regulator.
"We are clear that dividends must be linked to performance for customers and the environment," Black stated.
He further stated that the fine would provide Thames Water with certainty for "both its past failures and what we expect from the company to comply with its obligations in future.
"The company is seeking new buyers to fund its turnaround to provide better services for customers and the environment by improving operational performance and financial resilience.
"This provides a clear opportunity to break with the past, Thames Water will now need to correct the issues our investigation has identified."