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Three water companies facing £168m combined fine over sewage failings | Business News

Three water companies are facing a combined record fine of £168m after a series of failings, including over sewage treatment.

The proposals by regulator Ofwat include a penalty of £104m for Thames Water.

Yorkshire Water faces a £47m fine, while Northumbrian Water will have to pay £17m.

It comes after an Ofwat investigation found the firms had “routinely released sewage into our rivers and seas, rather than ensuring that this only happens in exceptional circumstances as the law intends.”

The regulator said it would consult on the level of the fines before the companies are ordered to pay up.

Ofwat chief executive David Black said: “Ofwat has uncovered a catalogue of failure by Thames Water, Yorkshire Water and Northumbrian Water in how they ran their sewage works and this resulted in excessive spills from storm overflows…

“The level of penalties we intend to impose signals both the severity of the failings and our determination to take action to ensure water companies do more to deliver cleaner rivers and seas.”

He added: “These companies need to move at pace to put things right and meet their obligations to protect customers and the environment.”

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There has been increasing concern over pollution of the UK’s rivers and coastlines in recent years.

Analysis of Department for Environment, Food & Rural Affairs data suggested sewage was dumped into rivers, lakes and beaches designated “safe to bathe in” an average of 86 times a day in 2023.

Environment Agency figures also showed untreated sewage discharges doubled from 1.8 million hours in 2022 to a record 3.6 million in 2023.

Several water companies have also come under growing scrutiny over their financial health and plans to increase bills.

The announcement by Ofwat on Tuesday is thought to be a record combined fine for sewage failings.

In 2019 Southern Water was ordered to pay a record £126m package of fines and customer rebates over issues including sewage management and deliberately misreporting its performance.

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Deadline today for cat owners to microchip pets or face fine | UK News

Millions of cat owners in England face a fine of up to £500 if they fail to get their cat microchipped and registered on a database under new laws coming into force from today.

The legislation applies to cats aged 20 weeks and older – but of the estimated nine million pet cats in the country, up to 2.2 million are still not chipped, according to data from the charity Cats Protection.

It costs between £20 and £30 to have a cat microchipped by a vet, the charity said.

Around a quarter of owners who have failed to get their cats microchipped said it was because their pet does not venture outdoors, and around 14% said it was identifiable by its collar, according to research by the charity.

Owners found not to have microchipped their pet will have 21 days to have one implanted or face the financial penalty.

The mandatory scheme aims to make it easier for lost or stray pet cats to be reunited with their owners.

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Madison Rogers, head of advocacy, campaigns and government relations for Cats Protection, said: “Some owners think they are never going to go through the trauma of losing their pet cat, but in the last year 115,000 pet cats in England went missing and never returned home.

“Cats are nimble and extremely agile and can easily slip out without us noticing.

“Many lost cats live a frightening life on the streets. No food, no water, no shelter, no veterinary care and constantly at risk of severe injury or death from many hazards such as cars and wild animals.

“Collars can easily drop off, become damaged so that the address details become unreadable and, if they are not quick release, can become snagged on obstacles like tree branches, causing injuries to the cat.

“A microchip is safe, stays with your cat for its lifetime and is linked to contact details that are stored safely in a database.”

Nutmeg, a cat owned by Sandra Sinclair, a teacher from Tooting in south-west London, was found wandering the streets of Ascot in Berkshire, 30 miles away from home, after going missing.

The feline was reunited with his family after his microchip was scanned by Cats Protection.

Ms Sinclair said only Nutmeg will ever know how he got to Ascot, but added the family were “relieved” they had him microchipped.

Read more:
Microchipping pet cats – what you need to know

Alice Potter, cat welfare expert at the RSPCA, said: “We have seen cats coming into our care who are sadly not microchipped and may never be reunited with their owners.

“On average, 11% of all cats coming into the RSPCA’s care are still not microchipped.

“We’ve also rescued cats who have been microchipped but the details haven’t been kept up to date, which is arguably even more frustrating as it means cats spend a long time in our care whilst we fruitlessly try to contact the owner with out-of-date information.

“However, we’ve also seen countless stories of cats that have been reunited with their owners thanks to a tiny microchip – showing what this change of legislation will achieve for animal welfare.”

Ofwat hits ailing Thames Water with £40m fine over dividend payment | Business News

Britain’s biggest water company has been told it faces a fine of more than £40m over the payment of a shareholder dividend in spite of its poor performance.

Sky News has learnt that Ofwat notified Thames Water last month that it was minded to impose the penalty for breaching rules on the payment of dividends.

The development will pile further pressure on Thames Water as it limps towards a potential temporary nationalisation under a debt mountain of more than £15bn.

The fine being considered by Ofwat is notable because it is larger than the £37.5m payout made to shareholders last autumn, according to a Thames Water insider.

The company has the right to appeal over the proposed fine before a final decision is made, and the timing of the general election on 4 July means that a final ruling is now unlikely until after that date.

Ofwat has already postponed its draft determinations on the five-year spending and investment plans of Britain’s privately owned water companies until after the election.

It had been due to issue its initial decisions on 12 June.

Its final determinations, which are expected in December, will shape investors’ decisions about whether they can commit capital to fund the companies over the following half-decade.

Thames Water has been plunged into the biggest crisis in its history by its shareholders’ judgement that the company has become “uninvestible” as a consequence of the regulatory framework set by Ofwat.

The company, which serves more than 15 million customers across London and south-east England, counts sovereign wealth funds and pension funds from Australia, Canada, China and Britain among its shareholders.

This week, the Financial Times reported that Ofwat was considering the introduction of a “recovery regime” for financially troubled water companies to enable them to survive.

This would entail reducing future financial penalties for water leaks and pollution – both of which have stained Thames Water’s reputation in recent years.

Ofwat has refused to comment on the report.

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Last month, Sky News revealed that representatives of Thames Water’s multinational syndicate of shareholders were quitting as directors of its corporate entities after refusing to inject the billions of pounds of funding required to bail it out.

The payment of the controversial dividend from Thames Water Utilities Limited, the operating business, to Kemble Water and its affiliates, is understood to have fallen foul of rules overseen by the regulator, which aim to avoid rewarding shareholders during periods of poor performance.

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Ofwat’s intention to take action against Thames Water over the dividend payment was reported last month but without any indication of the likely size of a penalty.

Thames Water refused to comment this weekend on the specifics of the proposed fine, but has previously said: “We take our licence obligations very seriously, including those relating to the declaration and payment of dividends.”

A default on part of its holding company debts in April has raised the prospect that Thames is heading towards special administration, a form of insolvency that would effectively leave the government liable for managing a company which serves nearly a quarter of Britain’s population.

Its bonds have plummeted to record lows amid fears that lenders face steep losses in any bailout deal.

The prospect of temporary nationalisation will place it among the most pressing domestic challenges facing the next government.

Last summer, Sky News revealed that Whitehall officials had started drawing up contingency plans for Thames Water’s collapse amid fears that it might not survive.

It has since parachuted in Chris Weston, the former Aggreko chief executive, as its new boss.

Ofwat declined to comment on Saturday on the proposed penalty.

Queen says King is ‘fine’ and ‘looking forward to getting back to work’ ahead of prostate treatment | UK News

Queen Camilla has said the King is “fine” and is “looking forward to getting back to work” as he awaits treatment for an enlarged prostate.

Buckingham Palace announced yesterday the King is set to attend hospital for the treatment next week.

The palace has postponed his engagements in the meantime.

It is not known exactly what procedure the King, who is 75, requires, but the palace said he will need “a short period of recuperation”.

He is at his private home Birkhall in Aberdeenshire, where he is preparing for the procedure.

The Queen has been visiting the Aberdeen Art Gallery, and was asked about the King by the Lord Provost.

She replied: “He’s fine, thank you very much. Looking forward to getting back to work.”

It comes as the Prince of Wales visited his wife Kate in hospital while she recovers from abdominal surgery.

William was seen leaving the private London Clinic at around 12.35pm on Thursday.

The Prince of Wales (left) drives away from the London Clinic, in central London, where the Princess of Wales is recovering after undergoing successful abdominal surgery. She was admitted to The London Clinic on Tuesday for the planned procedure. Picture date: Thursday January 18, 2024.
Image:
The Prince of Wales leaving the London Clinic

The princess was admitted on Tuesday for the successful, planned procedure but is expected to stay in hospital for 10 to 14 days before returning to her Adelaide Cottage home in Windsor.

Sky News understands the planned surgery was routine.

Kensington Palace refused to confirm what Kate was being treated for but said the condition was non-cancerous.

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Rishi Sunak branded ‘total liability’ as he faces backlash from MPs after being handed second police fine | Politics News

Rishi Sunak has been branded a “total liability” and “hapless” as he faced backlash for being fined for a second time, with police handing him a fixed penalty notice over not wearing a seatbelt.

Lancashire Police issued the notice after the prime minister appeared without a belt in a clip on Instagram as he promoted his levelling-up funding in Lancashire.

Mr Sunak has accepted the fine, with Downing Street saying he “fully accepts this was a mistake” and will “of course comply with the fixed penalty”.

Critics are now accusing the PM of showing “the same disregard for rules” as his Number 10 predecessor Boris Johnson.

‘Hapless’ Sunak has photo-op blow up in face, says Labour – politics latest

Labour deputy leader Angela Rayner tweeted: “Rishi Sunak is a total liability.”

Chris Bryant, Labour MP for Rhondda, said: “Sunak promised honesty, integrity and accountability on the steps of Number 10. Not only has he been fined again for breaking the law, but Zahawi has been fined as well. It’s time they all went. It’s time for a general election.”

The Labour Deputy Leader says the Prime Minister "should tell the public" if he's registered with a private GP
Image:
Labour deputy leader Angela Rayner called the PM a ‘total liability’

A Labour spokesperson added: “Hapless Rishi Sunak’s levelling-up photo op has blown up in his face and turned him into a laughing stock.

“He started the week hoping people would be grateful for a partial refund on the money that has been stripped from them over 13 years of the Tories. But instead he got a warring party and yet another fine from the police.”

‘No one is above the law’

Labour MP Cat Smith thanked police for their road safety work before taking a swipe at Mr Sunak by saying “no one is above the law”.

But Tory MP Scott Benton struck a different tone to his fellow Lancashire MP, saying the seatbelt complaint was politically motivated and bad use of police time.

In an apparent bid to downplay the significance of the notice, the Blackpool South MP tweeted: “@LancsPolice do an amazing job, but I’m sure their time is better spent investigating serious crime which impacts on my constituents.

“The vast majority of people would think that politically motivated complaints about a seat belt are not good use of frontline resources.”

Meanwhile, Liberal Democrat deputy leader Daisy Cooper said: “Rishi Sunak has shown the same disregard for the rules as Boris Johnson, and now becomes the second ever prime minister to be fined by the police.

“From partygate to seatbelt gate, these Conservative politicians are just taking the British people for fools.

“Whilst they continue to behave as though it’s one rule for them and another for everyone else, this fine is a reminder that the Conservatives eventually get their comeuppance.”

The criticism comes as Labour is also calling on Mr Sunak to dismiss Nadhim Zahawi from his cabinet after questions over the Tory chairman’s tax affairs remain unanswered.

Questions have swirled following an article in The Sun on Sunday, which claimed a seven-figure payment was made by Mr Zahawi to end a dispute with the taxman “after scrutiny of his family’s financial affairs”.

Second serving PM to break the law while in office

Mr Sunak is the second serving prime minister – after Boris Johnson – to be found to have broken the law while in office.

The force said: “You will be aware that a video has been circulating on social media showing an individual failing to wear a seatbelt while a passenger in a moving car in Lancashire.

“After looking into this matter, we have today issued a 42-year-old man from London with a conditional offer of fixed penalty.”

Mr Sunak has previously been fined by the Met Police for breaking lockdown rules.

He and Mr Johnson were fined by the Metropolitan Police over a birthday held in Downing Street for the former prime minister when curbs were in place.

Read more:
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Sunak’s slip-ups could be exploited by opponents to brand him out of touch

Political correspondent Joe Pike

Joe Pike

Political correspondent

@joepike

Downing Street will be hoping that once the PM has paid up, voters and journalists will move on and forget this rather embarrassing unforced error.

To Rishi Sunak’s credit, he put his hands up and admitted the error almost immediately.

But it is a reminder that in the top job, with a permacrisis of strikes, NHS delays and high inflation, mistakes can slip through the Number 10 net.

Failing to wear a seatbelt is illegal, but filming it and publishing the evidence on social media suggests a lack of checks within the PM’s team.

This is the second police fine Mr Sunak has received in 9 months, after the Met Police punished him for attending a lockdown-busting birthday gathering for Boris Johnson.

In recent months Mr Sunak has struggled with contactless payments, had an awkward conversation with a homeless man about financial services, and demonstrated a fondness for using private jets to travel around the UK even for relatively short journeys.

Added together, such slip-ups may be exploited by the PM’s enemies to claim he is out of touch.

There is certainly a danger these small missteps distract from Rishi Sunak’s attempts to stabilise the economy and sort out seemingly intractable issues like migrant crossings and delayed discharges.

Like many occupants of Number 11, Rishi Sunak was a ‘submarine chancellor’. Invisible below the waves for months on end, he occasionally rose from the deep to launch a killer economic intervention: his “whatever it takes” COVID budget, the furlough scheme, Eat Out To Help Out.

But as Gordon Brown (the last politician to move from 11 to 10) found, similar manoeuvres are not possible as prime minister.

You are constantly in the spotlight. And it is an unsparing existence.

Law must be applied ‘impartially’

Sky News’ policing analyst Graham Wettone said he is “not surprised” about the notice, adding that it is the “right and proper” resolution.

“It is exactly what would happen to anybody else if they were to commit a similar offence and the police discovered it.”

Mr Wettone dismissed criticism that the prime minister has been treated unfairly, suggesting the case was “fairly simple” and that the law must be applied “impartially”.

Fines of up to £500 can be issued for failing to wear a seatbelt when one is available.

There are a few exemptions, including when a car is being used for police, fire and rescue services, and for certified medical issues.

Mr Sunak came to office promising “integrity” after the scandals that eventually forced Mr Johnson from office.

Mr Sunak’s premiership has been hit with a series of controversies since he entered Number 10 in October, from criticism for reinstating Suella Braverman as home secretary six days after she was forced to step down over a security breach to an ongoing bullying inquiry into Dominic Raab, the deputy prime minister.