Environmental groups fear the millions will be “lost to the black hole of the Treasury” and urged the Government to use the money on restoring and protecting waterways.
Amounting to nine per cent of Thames Water’s annual turnover, it is the largest fine ever issued by Ofwat and will be payable to the Treasury.
However, he has so far resisted calls to use the funding for cleaning up rivers, despite a pledge from the previous Conservative Government to ring-fence fines for this purpose.
A grant programme called the Water Restoration Fund was set up to use the fines for sewage clean-ups, but grants were repeatedly delayed under both Governments.
Labour finally released the funding in March, nine months after projects were initially due to commence.
Campaigners pushed for an amendment to Labour’s recently passed Water Bill to ensure fines would be used for environmental purposes, but this was denied.
Mark Lloyd, chief executive of the Rivers Trust, said Ofwat’s record fine against Thames Water was “a welcome sign that the regulators are finally showing their teeth”, but that it was “imperative” the funding was used “to rectify the environmental harm our rivers have been suffering”.
A Government source said any future decision on the use of water company fines will be taken at next month’s Spending Review.
“We’ll be watching the Spending Review closely for signs the Chancellor will restore Department for Environment, Food and Rural Affairs funding and deliver on election promises to clean-up Britain’s waterways.”
Read More Details
Finally We wish PressBee provided you with enough information of ( Thames Water fined £123m over sewage – but not £1 of it earmarked for clean-up )
Also on site :