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The main water supply company in Wales being one of only three UK firms which was blocked by the regulator from using customer money to pay bosses bonuses, highlights other huge controversies about the corporation which The Eye have brought out.
Thames Water (TW), Yorkshire Water (YW) and Dŵr Cymru Welsh Water (DC WW), were reprimanded by the regulator Ofwat, and Chief Executive Officer (CEO) David Black warned that water businesses “need to do more to rebuild public trust”.
Ofwat said any bonuses paid out of customer funds would be deducted from future customer bills.
The trust they have stressed may also have been eroded by recent headline-grabbing events.
It has been proclaimed online: “Welsh Water always make a profit. Their directors can earn up to 100% bonus!
“They are correct that they don’t have shareholders but they do have Bond holders who have funded 3.8 billion pounds.
“These bonds are traded on the Luxembourg’s Bourse so no need to disclose shareholders!
“Who does own Welsh Water? Last year correct they didn’t pay dividends, but they did pay £347 million to these bond holders! Some of these bond holders are receiving a fixed rate of 6% others are receiving RPI currently 3.5% +4.4% =7.9% Now you try getting that return on a blue chip investment!”.
The company was responsible for a total of 107 sewage pollution incidents during 2023.
The number of serious pollution cases rose from five to seven, including a major one involving a burst sewer pipe on the River Taff at Pontypridd in March last year.
Last October it was revealed that there had been more than 200 breaches recorded by Natural Resources Wales (NRW) including sewage spills and water quality offences, however the firm had been fined just TWICE!
In total by that month, the regulator had recorded 223 breaches by DC WW since the start of 2018, according to data from Freedom of Information (FoI) requests by Violation Tracker and shared with WalesOnline (WO).
James Tennet, of the Dawnstalkers Penarth (DP) swimming group, said it was “deeply depressing to see the extent of environmental harm” caused by the supplier, adding: “As this data shows, they (the watchdog) are doing a terrible job at keeping our waterways clean and safe, and still not taking the problem seriously enough… Natural Resources Wales needs to play the role of a real regulator by issuing fines and prosecutions rather than toothless warnings”.
The week before this was published The BBC had reported how DC WW had been illegally spilling untreated sewage at dozens of treatment plants for years, including an environmentally protected area near a rare dolphin habitat in Cardigan, and the company has accepted it had between 40 and 50 wastewater treatment plants operating in breach of permits.
According to the information shared with WO one of the worst-performing plants is in that town, where the outflow point spills into the Teifi estuary near a dolphin area.
Alun Moseley, of Surfers Against Sewage (SAS), said it was a “national scandal” that a special area of conservation had seen sewage spilled for more than 200 days each year between 2019 and 2022.
One of the two prosecutions by NRW came in 2019 when DC WW was ordered to pay £49,150 at Swansea Magistrates’ Court after admitting to a chemical discharge which killed more than 500 fish near its Felindre waterworks.
The other saw the company told to pay £205,871 at Llandudno Magistrates’ Court in 2021 after pleading guilty to causing a pollution incident along the River Clywedog.
A nine kilometre stretch of the river was affected as crude settled sewage spilled from the Five Fords wastewater treatment plant and killed more than 3,000 fish.
According to the data, DC WW’s other infringements include a Site of Special Scientific Interest (SSSI) offence, a waste offence under the Environmental Protection Act (EPA), and a breach of the Salmon and Freshwater Fisheries Act.
Responding to criticism over the number of prosecutions, Gavin Bown of NRW proclaimed: “While we do prosecute in appropriate cases, the fines handed down by the courts go back to the UK Treasury and not to remediate the environmental problem”.
When there is heavy rain, a wastewater treatment plant is allowed to discharge untreated sewage so it does not become overwhelmed.
But releasing any before a plant reaches the overflow level is an illegal breach of its permit. DC WW has admitted between 40 and 50 of its plants are breaching their permits.
This can be added to the list of controversies – along with being one of only three water companies told off by the regulator for using customers’ money to fund bosses bonuses…
The memories of our Editor Phil Parry’s astonishing 41 year award-winning career in journalism (when misdeeds were often reported), as he was gripped by the rare neurological condition Hereditary Spastic Paraplegia (HSP), have been released in a major book ‘A GOOD STORY’. Order the book now!
