Anglian Water hit with £62.8million penalty over sewage spill failures

Anglian Water is being forced to pay out £62.8 million after a major investigation found the company failed to properly manage and maintain its wastewater treatment works and sewer networks.

The enforcement package has been proposed by Ofwat, the water regulator, which said the money will be funded by Anglian Water and its shareholders, “for the benefit of the environment and their customers.”

The findings follow a detailed investigation, launched in March 2022, that uncovered systemic failures across the utility’s operations – including poor maintenance, inadequate upgrades, and a lack of proper oversight from senior management and the company’s board.

Anglian Water serves around seven million people across the East of England. The firm is responsible for maintaining the water and wastewater infrastructure in Southend-on-Sea, including treatment works, pumping stations and sewer networks that deal with both foul and surface water. This includes managing storm overflows and ensuring sewage is safely processed and discharged, particularly during periods of heavy rainfall – an area that has drawn increasing concern from residents across the city following several recent flooding incidents.

What the investigation uncovered

Ofwat found that Anglian Water had failed to operate and upgrade its wastewater infrastructure to cope with modern sewage and stormwater flows, leading to repeated environmental harm.

Lynn Parker, Senior Director for Enforcement at Ofwat, said:

“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.

“We understand that the public wants to see transformative change. That is why we are prioritising this sector-wide investigation which is holding wastewater companies to account for identified failures.

“We are pleased Anglian Water has accepted that it got things wrong and is now focusing on putting that right and taking action to come back into compliance.”

The £62.8 million package includes:

• £5.8 million for a community fund supporting local projects focused on environmental and social improvements, particularly in restoring the water environment
• £57 million for Excess Flow Management Plans across at least eight catchments in the region to reduce wastewater discharge and improve local water quality
• Accelerated investment in stormwater infrastructure, including the early delivery of 36 storm tanks, 45 screens, and 42 additional measures under the firm’s Storm Overflows Discharge Reduction Plan

Anglian Water will also be required to develop a remediation and compliance plan to ensure all storm overflows meet legal standards.

Public consultation and wider context

The enforcement package is currently subject to public consultation. Stakeholders and members of the public can submit their comments before Ofwat makes its final decision.

This comes as the water industry faces growing public anger over pollution and stormwater discharges. In May, Anglian Water was fined a record £1.42 million for drinking water failures that affected 1.3 million customers.

Earlier this year, the company also announced that bills would rise by 19%, taking the average annual household water bill to £626 from April 2025.

Anglian Water, which serves around seven million people across the East of England, said it is committed to rebuilding trust.

Chief executive Mark Thurston said:

“We understand the need to rebuild trust with customers and that aspects of our performance need to improve to do that.

“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.

“In the meantime, we have proposed this redress package, recognising the need to invest in the communities and environments most impacted.”

Anglian Water and its shareholders had already pledged £100 million in 2024 to improve its pollution and spill record.

Southend continues collaboration with Anglian Water and Environment Agency on flood resilience

Southend City Council is also continuing its work with Anglian Water and the Environment Agency to strengthen the city’s flood resilience and promote sustainable water management, following the launch of a major partnership last year.

The collaboration began with a meeting on 29 October 2024, chaired by Environment Agency chair Alan Lovell and Anglian Water chair Dr Ros Rivaz. The meeting brought together senior council figures and project leads to discuss key initiatives including the Catchment to Coast project — a DEFRA-funded pilot within the Flood and Coastal Resilience Innovation Programme (FCRIP).

Catchment to Coast aims to tackle surface water and coastal flooding across Southend-on-Sea, Thurrock, and parts of Castle Point by using natural flood management techniques. The project takes a whole-catchment approach, working with nature to slow, store and filter water before it reaches vulnerable urban areas. It’s designed to demonstrate how nature-based interventions can reduce flood risk while improving environmental resilience.

Also on the agenda was the Marine Parade Sustainable Water Management Scheme, which is set to transform parts of Southend’s seafront with rain gardens and rainwater-harvesting infrastructure. The project will reduce reliance on mains water by capturing, cleaning, and reusing rainwater in public spaces, supporting both climate adaptation and biodiversity goals.

Cllr Lydia Hyde, cabinet member for climate, environment and waste, said at the time of the partnership’s launch:

“We are incredibly proud to have hosted such influential leaders in Southend to discuss these vital initiatives. Both Alan and Dr Rivaz shared invaluable insights and enthusiastic support for our city’s commitment to becoming a model of sustainable water management. Dr Rivaz even mentioned her plans to return and enjoy our beautiful coastline again soon.”

This work is part of an ongoing, long-term strategy to protect Southend against future flooding and create more climate-resilient infrastructure. Further updates on both schemes are expected in the coming months.

Future of regulation

Following the final report from the Independent Water Commission, the government plans to form a new single regulator for the water sector in England. This will bring together Ofwat, the Drinking Water Inspectorate, and elements of the Environment Agency and Natural England.

Ofwat said it will continue to press water firms to deliver “maximum value for customers, communities, and the environment” until the new regulator is in place.