Welsh water firm Hafren Dyfrdwy has agreed to pay ยฃ280,000 after โ€œunacceptableโ€ failures led to sewage spills, regulator Ofwat has announced.

The industry watchdog said the utility had โ€œfailed in its duties to deal effectively with wastewater and sewageโ€.

Hafren Dyfrdwy, which is owned by Severn Trent, supplies around 109,000 customers with water and sewage services in north-east and mid-Wales.

The supplier has put forward plans for a ยฃ280,000 package of measures by 2030 to address the problems that came to light in the Ofwat investigation, which must not be paid for through higher customer bills.

Ofwatโ€™s probe found the company failed to provide adequate drainage and deal with the contents of its sewers and did not have the right processes and systems in place to meet requirements.

It comes after Hafren Dyfrdwy has been allowed to hike customer bills by ยฃ54, or 9%, to ยฃ635 on average in the 2026-27 financial year.

Lynn Parker, senior director for enforcement at Ofwat, said: โ€œOur investigation found unacceptable breaches by Hafren Dyfrdwy, which have resulted in excessive spills from storm overflows.

โ€œWe are clear this is unacceptable and now expect the company to focus on putting things right so that customers can regain trust in their water company and the critical service they provide.โ€

Hafren Dyfrdwy โ€“ which means Severn Dee โ€“ must take action including putting in place two storm water balancing tanks to reduce spills, and working with a local preservation trust to help create a wetland habitat.

It marks the ninth case in Ofwatโ€™s sector-wide sewage investigation, which it said had already secured more than ยฃ300 million in enforcement packages and fines.

Ms Parker said: โ€œWe understand that the public wants to see transformative change.

โ€œThat is why we are prioritising this sector-wide investigation, which is holding companies, like Hafren Dyfrdwy, to account.โ€