Dŵr Cymru/Welsh Water has been ordered to pay a £24.1m underperformance penalty by industry regulator Ofwat.

The penalty imposed on Dŵr Cymru is part of a broader effort by Ofwat to hold underperforming water companies accountable.

Last year, Dŵr Cymr released sewage into rivers, lakes and the sea around Wales for more than 916,000 hours - about 20% of all hours of discharges across Wales and England.

David Black, chief executive of Ofwat said: “This year’s performance report is stark evidence that money alone will not bring the sustained improvements that customers rightly expect.

“It is clear that companies need to change and that has to start with addressing issues of culture and leadership. Too often we hear that weather, third parties or external factors are blamed for shortcomings.

“Companies must implement actions now to improve performance, be more dynamic, agile and on the front foot of issues. And not wait until the Government or regulators tell them to act.

“As we look towards the next price control, the challenge for water companies is to match the investment with the changes in company culture and performance that are essential to deliver lasting change.”

Responding to the news that Welsh Water have been ordered to pay a £24m penalty by industry regulator Ofwat, the Leader of the Welsh Liberal Democrats Jane Dodds MS said: “For far too long now, the people of Wales have been saddled with rising water bills while our rivers and coastlines are being polluted with sewage.

“It’s clear that our Welsh water companies have routinely fallen short of the standards expected of them.

“We as the Welsh Liberal Democrats have long campaigned for the urgent clean-up of our rivers and coastlines and for harsher punishments for those guilty of sewage dumping.

“There can be no more excuses for inaction, if we want change then we must act decisively both for the people of Wales and its beautiful natural environment.”

A Dŵr Cymr/Welsh Water spokesperson said: “We are working hard to deliver the improvements that we know we need to make and our customers expect of us and have been outlined by Ofwat. Such improvements take time and are supported by detailed investment plans to ensure progress.

“As a water company with no shareholders, our focus is on the service we deliver our customers and reducing our impact on the environment. Whilst Ofwat’s report published today is for 2023/24, we have seen some positive signs so far this year (2024/25).

“We are, however, only six months through the year and there’s still need for significant, sustained improvement.

“Between 2025-2030 we’ve put forward a record investment package of £4bn, this is essential to support the improvement in performance we are seeking to deliver, including £2.5bn targeted at environmental improvement. This investment will drive improvements for customers and ensure a high standard of performance across the company.”