Regulator Weighs Leniency for Struggling UK Water Companies

Ofwat considers reducing fines and easing targets for companies like Thames Water to encourage infrastructure investment and avoid collapse.

Thames Water and other utilities may face fewer fines for sewage spills under proposed 'recovery regime'.
The plan aims to help financially burdened companies invest in infrastructure rather than pay hefty penalties.
Critics argue the leniency would undermine accountability for environmental damage caused by sewage dumping.
Thames Water's financial woes have led to fears of collapse, with significant debt and shareholder reluctance to invest further.
Ofwat's approach seeks to balance the need for investment with preventing nationalisation and maintaining regulatory credibility.