Ofwat Fines Thames Water £123M for Major Breaches

UK regulator Ofwat has fined Thames Water a record £122.7 million after its largest investigation, citing serious breaches in wastewater management and improper dividend payments. The fine includes £104.5 million for failures in wastewater operations and £18.2 million for distributing dividends not based on company performance, marking Ofwat's first enforcement of such rules. Ofwat stated the fines will be paid by Thames Water and its investors, not customers, and has issued an enforcement order for future compliance. Thames Water, serving 16 million people and burdened by debt, is seeking new investors to stabilize its finances. Regulator and government officials say the move signals an end to water companies profiting from failure, and represents heightened regulatory scrutiny. Thames Water acknowledged the breaches and claims progress on environmental issues.