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Severn Trent Water breached rules for failing to deal effectively with wastewater and sewage, but will avoid a fine after taking “genuine accountability” to fix the problems, regulator Ofwat has said.

The water watchdog has been investigating how wastewater and sewage networks are managed across the industry.

It found that Severn Trent, which supplies water to more than eight million people across England and Wales, breached its duties by failing to effectively provide drainage and deal with the contents of its sewers.

In the past, the company did not have the systems and processes in place that were required to monitor and maintain its network, Ofwat said.

Severn Trent is the eighth case that Ofwat has completed in its industry-wide wastewater investigation, which has resulted in fines and enforcement packages worth more than £300 million.

This included a £104.5 million fine for Thames Water for wastewater failures.

Ofwat highlighted that, unlike the previous seven cases, Severn Trent proactively identified problems in its own network and began dealing with them before Ofwat opened a case in July 2024.

It now has the right processes in place and has invested £98 million of shareholder funds into improving its infrastructure, Ofwat said.

This has helped lead to a 41% reduction in spills from each storm overflow in 2025, compared with 2024, despite experiencing heavier rainfall than some other regions.

Lynn Parker, Ofwat’s senior director for enforcement, said: “Our investigation found serious and unacceptable breaches by Severn Trent Water – that is not in question and the company accepts it.

“But their response to those failures sets a standard we expect from all companies: identifying the problem, proactively investing to fix it and co-operating openly with the regulator.

“The 41% reduction in spills we are now seeing is what genuine accountability looks like in practice.

“We will always act where companies fail their customers and the environment.

“But we will also be clear, publicly, when a company does the right thing.”

Ofwat has two cases that are still open in its wider investigation.