What’s the point of fining Thames Water?

That should teach it a lesson. The utility giant Thames Water has today been hit with a massive £122.7 million fine for failing to deal with sewage properly, and for paying out excessive dividends. No doubt the regulator Ofwat thinks that will focus the minds of the company’s management and force it to sharpen up its act. There is just one snag. Thames Water is already close to going bust. In reality, it needs new management and a restructuring of its massive debts – and a fine won’t help that. 

After what it described as the sector’s ‘biggest and most complex investigation’, Ofwat imposed a fine of £104.5 million for Thames Water’s treatment of wastewater and £18.2 million in what it described as ‘undeserved’ dividend payments to its main shareholders in 2023 and 2024. ‘This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment,’ Ofwat’s chief executive David Black said.