Today, as part of its sector-wide wastewater investigation that launched in 2021, Ofwat has concluded that no financial penalty will be imposed on Severn Trent Water. This outcome reflects our response to the findings, which Ofwat acknowledges sets a standard expected from all companies. 

We accept the breaches identified, and our proactive approach and investment in our wastewater assets prior to the opening of the enforcement case has been recognised. Ofwat also acknowledges our strong Board oversight as well as our operational controls.  

We prioritised monitoring of our storm overflows over ten years ago during AMP6 and in 2023 committed to invest £450m by 2030 as part of our ‘Spills Reduction Programme’ to upgrade storm overflows and storage capacity across our network. By 2030, we expect to reduce spills per storm overflow to an average of below 14 per year and to achieve this with climate change and population growth will require continued investment. 

We have cooperated openly with Ofwat and have committed to forward looking undertakings to take the necessary steps to ensure future compliance. 

James Jesic, Chief Executive, Severn Trent Plc, said:   “We’re delivering a significant storm overflow spills reduction programme and Ofwat has recognised this in today’s decision. 

“We accept Ofwat's findings relating to issues that we proactively identified and began addressing these before the enforcement case was opened. By monitoring and investing early to put things right, we are now seeing the benefits, including reducing average storm overflow spills by 41% in 2025. 

“Our investment programme in spills reduction continues across our region at pace with the strength of our whole organisation and supply chain behind it. We still have work to do and remain absolutely focused on delivering further improvements for our customers and the environment.”

In a press release issued today, July 8, Ofwat said Severn Trent Water had “taken ownership of the problem, has been proactive in identifying and addressing issues with its wastewater assets and ambitious in its approach, with visible benefits already being in place.”  

Ofwat added £98m of shareholder-funded investment would fund additional capacity at 65 wastewater treatment sites, Flow to Full Treatment and storm tank enhancements, increased storage at storm overflows, and £26m of nature-based solutions in the Mansfield area. This forms part of an ambitious spills reduction programme launched in 2024.

The regulator said that “the impact of this investment is clear in the data: the company achieved a 41% year-on-year reduction in spills per storm overflow in 2025 (compared to the same data in 2024), despite experiencing heavier rainfall than some other regions, and has been a consistent higher than average performer on this measure throughout the investigation period.” 

Lynn Parker, Senior Director for Enforcement at Ofwat, said: "Our investigation found serious and unacceptable breaches by Severn Trent Water — that is not in question and the company accepts it. But their response to those failures sets a standard we expect from all companies: identifying the problem, proactively investing to fix it, and cooperating openly with the regulator.  

“The 41% reduction in spills we are now seeing is what genuine accountability looks like in practice. We will always act where companies fail their customers and the environment. But we will also be clear, publicly, when a company does the right thing." 

To see the full Ofwat release, visit here