28 September 2007
Ofwat has fined Thames Water more than £12 million, representing the largest fine ever to be imposed on a water utility.
The UK's water industry regulator has fined the company for poor reporting and customer service, following last year's probe into the utility provider's reporting of customer service performance.
The water services watchdog has fined the company £11.1 million for failures to provide "robust information", as well as a further £1.4 million for poor processes and systems.
Such inadequacies meant that thousands of customers received poor service and missed payments they were owed.
Ofwat Chief Executive, Regina Finn, said: "Thames' reporting systems were inadequate. Deficient systems and low business priority on reporting non-financial data led to these serious failings.
"Our proposal to fine Thames reflects this and gives a clear signal to both the company and the water industry that non-compliance is not a cheap or easy option."
Meanwhile, Thames Water has defended the company's actions, saying it will fight the fine.
"We can see no justification for the level of the fines proposed. They are totally disproportionate to any sensible measure of the harm the original GSS payment irregularities may have caused and disregard the steps we have taken to reimburse our customers," Thames Water Chief Executive, David Owens, said.
"What particularly concerns us is this large sum of money could be spent directly on improving services to customers, but the only benefit will be to the Treasury. This makes little sense."
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.