Enforcement
The Inspectorate publishes the drinking water quality Legal Instruments on the website under company improvement programmes. Security (SEMD and NIS) legal instruments are considered sensitive and therefore are not published in the public domain. A summary of the Legal Instruments issued in this quarter is below.
| Type of legal instrument | Number | Companies |
|---|---|---|
| Regulation 28(4) Notice relating to risks identified in water safety plans | 14 | Northumbrian Water (3) Severn Trent (3) South West Water (3) Thames Water (2) United Utilities (2) Wessex Water (1) |
| Enforcement Order under section 18 of the Water Industry Act 1991. | 4 | Severn Trent Water (1) Southern Water (1) Thames Water (2) |
| Regulation 15 Notice for information under the Network and Information Systems Regulations 2018. | 1 | Affinity Water |
The Inspectorate served a notice under regulation 28(4) on Southern Water for their Yew Hill Service Reservoir on 15 August 2022. It required that specified measures be carried out in order to prevent the deterioration in the quality of drinking water supplied. The company submitted a change application in early 2024, requesting date changes (delays). The Inspectorate concluded that the delays were as a result of inadequate management of the project and therefore should have been within the company’s control. Given the company’s track record in delivery delays and the ongoing public health risk presented by this reservoir, the Inspectorate proceeded to consult on and then make an enforcement order under section 18 of the Act. The population potentially impacted by this reservoir is 116,588 and the company must seek all opportunities to expedite this work to safeguard wholesome supplies of drinking water to them.
Southern Water now have seven live final enforcement orders, an unprecedented situation in the time that the Inspectorate has existed. The company must take steps to ensure that it delivers on all of its legal instrument commitments, in order to halt the progression through the enforcement escalation process we have seen over recent years that has resulted in these enforcement orders.
Thames Water submitted two PR24 schemes for the Inspectorate to consider for support, for improvements in meeting the requirements of the Security and Emergency Measures Direction (the Direction). The requested support was subsequently given. However, the company failed to submit section 19 undertakings to formalise the supported schemes. Audits undertaken by the Inspectorate confirmed the need for the improvements to be delivered in order to comply with the Direction and the company were given a further opportunity to offer undertakings. The company declined to do so, therefore the Inspectorate initiated enforcement under section 18 in the form of two final enforcement orders. These Orders have now been made and require the company to implement the required improvements.
In late September, Inspectors attended a former reservoir site, now used as storage for emergency, alternative supplies (pallets of bottled water). The bottles were found to be stored in wholly inadequate conditions, open to wildlife and vermin, and with detritus covering many of them. In order to protect public health, the Inspectorate immediately served a provisional enforcement order under section 18 of the Act. The order prohibited the use of this water for consumption by the public. It also required a thorough investigation into the circumstances of the storage conditions arising, the destruction of all bottled water stored at the site, an internal audit of storage conditions at all other company bottled water stores, including addressing any issues observed and a review of relevant procedures and training. The dates given in the Order require the work to be completed before the end of the calendar year.
A regulation 28(4) notice was served on Thames Water, at the company’s request, for Bowsey Service Reservoir. This reservoir was previously included within the wider Tank Inspection and Cleaning notice, however the company identified that this reservoir required further enabling work, so requested that it was put into its own discrete improvement programme. The Inspectorate agreed with this approach, and as such a new notice was served to address bacteriological risks associated with contamination from ingress into the reservoir. The scheme has a completion date of 31 December 2032 and will benefit a population of 36,927.
Following a serious event in September 2023, involving the detection of Cryptosporidium oocysts at Thames Water’s Sheeplands water treatment works, the Inspectorate concluded that the likelihood of recurrence was high and therefore enforcement action was initiated. A regulation 28(4) notice was served on Thames Water, requiring the company to take steps to address unmitigated water quality risks relating to Cryptosporidium and turbidity. The notice has a completion date of 31 August 2027, and will benefit a population of 36,927 people.
Beginning in March 2023, there was a serious water quality event in Wallasey, Merseyside, an area supplied by United Utilities. A cross-connection of a potable main with a non-potable main led to consumers being supplied with green, discoloured water. The Inspectorate was critical of United Utilities’ approach to network investigations and the use of water fittings inspections to aid its investigations. The company already had a regulation 28(4) notice in place, which contained measures to address deficiencies in water fittings and investigations, however these measures had already been completed. The Inspectorate did not consider that the company were in breach of this notice but considered that learning from the Wallasey event could be used to enhance the outcomes of the existing notice, strengthen the company’s procedures and carry out further training of its staff. The Inspectorate therefore decided to vary this notice under regulation 28(6), and reopen some of the steps, with the addition of other measures, to ensure the company took steps to incorporate learning into its management systems and prevent a recurrence. This notice will now be completed on 30 June 2025.
A notice under regulation 28(4) was served upon United Utilities, at the request of the company, for Winwick service reservoir. This reservoir was included in a wider improvement scheme for treated water storage tank cleaning and inspection; however, this wider notice was largely complete (see below), with Winwick Service Reservoir the only reservoir outstanding, and with some further work required. The Inspectorate agreed that this reservoir could be placed into its own improvement scheme, to address bacteriological risks associated with the integrity of the reservoir structure. This notice will be completed on 31 January 2026 and will benefit a population of 65,733.
In December 2023, Wessex Water reported a compliance breach of the total coliform parameter, at Chitterne works. The company was unable to determine a root cause for the exceedance, and there is only marginal chlorination at the works. Due to the known catchment risks, the observed raw water quality and the site currently using marginal disinfection with an undefined chlorine contact time, the Inspectorate concluded that there was a risk of further microbiological detections at this treatment works. Enforcement action was therefore initiated, and the Inspectorate served a notice under regulation 28(4) to ensure the company upgrades the disinfection to an appropriately designed and verified system. The notice is due to be completed on 30 April 2029, to the benefit of 878,894 people served by the treatment works.
Three notices under regulation 28(4) were served upon Northumbrian Water, following discussion with the company, for Whittle Dene Service Reservoir, Gunnerton contact tank and Horsley contact tank. They were originally included in a companywide notice for tanks and service reservoirs which is largely complete, however, these three projects, which require substantial engineering solutions would still be outstanding, with construction work yet to start. The Inspectorate agreed that the three schemes should be given their own notices to address disinfection risks and consistent with our tanks strategy and actions taken with other companies in similar scenarios. The completion date for Gunnerton is to be confirmed to the Inspectorate by 28 February 2025 to the benefit of 30,634 people served by the treatment works. Whittle Dene will be completed by 31 July 2028 to the benefit of 650,295 people served by the treatment works. Horsley will be completed by 30 June 2028 to the benefit of 847,536 people served by the treatment works.
Two events occurred at Frankley WTW which led to elevated iron entering into supply. The cause was due to components of the coagulation/clarification process not operating as expected. The Inspectorate is unable to conclude that further events will not occur. Therefore, a notice under regulation 28(4) was served on Severn Trent Water, to improve the operation of the treatment process, to the benefit of 2,079,618 consumers by June 2028.
Two notices under regulation 28(4) were served on Severn Trent Water for Trimpley and Melbourne water treatment works, to address the treatment of Cryptosporidium. Treatment and sampling processes are to be reviewed by 30 November 2025 to the benefit of 475,699 consumers in the Trimpley supply area and 1,614,139 in the Melbourne supply area.
Three notices under regulation 28(4) were served on South West Water following the annual return and submission of a change application for the existing “Review and revise water quality monitoring, control and investigations” company-wide notice. The aim of the existing notice is to improve onsite and portable monitoring, enhancing scientific investigation and will conclude in May 2025. Separate notices for Dousland, Prewley and Lowermoor Water Treatment Works were required, as access into the assets affected to carry out the required remediation could not be facilitated until enabling works are completed within the next investment period.
The Inspectorate’s NIS team conducted an audit of Affinity Water’s Cyber Assessment Framework. Despite advanced notice of the audit, the company were unprepared and were unable to produce the majority of the information requested. Therefore, a notice under regulation 15 of the Network and Information Systems Regulations 2018 was served on the company. This notice formally requires the company to provide all information required by the Inspectorate and which would ordinarily have been collected during the audit.
AMP8 Legal Instruments
Some companies submitted late PR24 submissions to the Inspectorate for consideration of support, immediately prior to Ofwat publishing its draft determinations on 11 July 2024. Whilst the Inspectorate’s deadlines were clear (for submissions to be completed during 2023), a small number of schemes were allowed to be submitted, by exception, where new risks to drinking water quality were emerging. The late submitted schemes that were supported, were formalised into regulation 28(4) notices during the third quarter.
| Company | Scheme | Details |
|---|---|---|
| Affinity Water | AMP8 PFAS Strategy | AFW-2023-00013 the company submitted a section 19. Undertaking in line with industry to mitigate risks associated with PFAS. |
| Anglian Water | Barrow PFAS | The company were observing consistent Tier 2 PFAS levels in the final water from Warren Hill Reservoir, which is linked to PFAS in Southfields borehole 3. Borehole 4 is at Tier 1, but the company would like to mitigate due to its proximity to borehole 3 and the anticipated risk posed. The preferred solution is the installation of Granular Activated Carbon (GAC) on the two at risk borehole sources. The scheme will conclude in April 2031 and will benefit 44,881 customers. |
| Southfields PFAS | The company observed consistent tier 2 detections in raw and final water at Barrow water treatment works, with one tier 3 detection at a borehole in May 2024. Blending is not a sustainable option and treatment for PFAS is not in place. The company propose GAC as its preferred solution. The scheme will conclude in April 2031 and will benefit 108,225 customers. | |
| South East Water | Cookham Nitrate | The company predict that nitrate will risk breaching PCV before the end of the next investment period. It will design and install a solution for addressing the nitrate risks at Cookham water treatment works. This scheme will be completed by 30 June 2030 and will benefit 142,667 consumers. |
| Cow Wish Bottom Nitrate | In response to rising nitrate concentrations, the company will design and install a solution for addressing the nitrate risks at Cow Wish Bottom water treatment works. This scheme will be completed by 31 December 2030 and will benefit 24,631 consumers. | |
| United Utilities | Royal Oak PFAS | The company have identified PFAS in tier 2 in the raw water source and will be designing and installing a process solution to address the risk of PFAS entering supply. This will be completed by 2032 to the benefit of 235,677 consumers. |
| Wickenhall PFAS | As with Royal Oak, above, the company have identified PFAS in tier 2 in the raw water source. It will design and install a process solution to address the risk of PFAS entering supply. This will be completed by 2031 to the benefit of 62,991 consumers. | |
| Wessex Water | PFAS Catchment Management | In an enhancement to its overall PFAS strategy, Wessex Water will develop a hydrogeological model for all of its catchments. The company will then use this model to inform, develop and implement a risk-based PFAS catchment monitoring strategy. The scheme will be completed by 31 December 2030. |
| Charlton PFAS | The company will complete the planning and design of a new treatment facility at Charlton works, to address risks of PFAS in the catchment. This will involve procuring land and gaining the planning permissions required, creating a detailed plan with timescales and then completing the installation and commissioning of the chosen treatment solution. The scheme will be completed by April 2036 and will benefit 6,735 people. | |
| Tucking Mill PFAS | The company will complete the planning, design and procurement arrangements to upgrade the existing Granular Activated Carbon (GAC) treatment at Tucking Mill treatment works, to address the risk of PFAS in the upstream catchment. The company will implement the upgrades to the GAC treatment and complete trials to ascertain the most effective treatment option for PFAS. The company will then implement the most effective treatment solution identified. The scheme will be completed by January 2032 and will benefit 199,598 people. | |
| Upton Scudamore PFAS | The company will complete the planning and design for a treatment solution for PFAS risks at Upton Scudamore treatment works. The company will develop a detailed plan with suitable timescales, followed by completing the installation and commissioning of the chosen treatment solution. The scheme will be completed by April 2036 and will benefit 149,594 people. |
Acknowledged Actions
In an example of better regulation in practice, the Inspectorate has been working closely with Ofwat on the enhancement schemes. The result is that Ofwat have not placed separate Price Control Deliverables (PCDs) on the Inspectorate supported schemes and have instead set the success criteria as successful completion of the relevant Inspectorate legal instruments. The Inspectorate will monitor the delivery of legal instruments through our routine work and will provide additional feedback to Ofwat in respect of progress.
As part of this arrangement, Ofwat asked the Inspectorate to also manage those schemes which had been funded but were commended for support by the Inspectorate rather than receiving full support in the form of a legal instrument. Schemes are usually commended for support because the Inspectorate supports the need to complete them, but because the case for an imminent risk had not been demonstrated, or the scheme falls outside of the scope of our regulatory remit, we cannot give full support in the form of a legal instrument. The Inspectorate therefore adopted the same approach as used to monitor the Green Economic Recovery schemes, which is put into Acknowledged Actions.
Acknowledged actions are not legal instruments and as such, have no legal status. They are a set of actions that companies commit to deliver and which the regulator (the Inspectorate, in this case) formally acknowledges. Acknowledged actions are assigned a reference number, similar to a legal instrument reference number and are tracked using the legal instrument tracking processes by the Inspectorate’s enforcement team. They do not preclude formal enforcement action, should risks change in the future.
Companies were requested to provide a single, annual report on progress against these actions, timed to coincide with the annual reporting to Ofwat and an additional completion report at the end of each scheme to demonstrate its success and thereby benefit and value for consumers.
The following acknowledged actions were formally put into place during the third quarter of 2024.
| Company | Scheme | Details |
|---|---|---|
| Dwr Cymru – Welsh Water | Catchment investigations | Improvement of catchment activities, including; improving understanding of risk, catchment knowledge, smart catchments with a digital twin to predict changes in raw water quality, research, collaboration with stakeholders to improve safeguarding of water supplies. This scheme will continue to 2030 and beyond as part of Dwr Cymru (Welsh Water’s) 2050 strategic ambition. |
| Severn Trent Water | Westwood / Dunhampton Cryptosporidium | Installation of Ultra Violet (UV) disinfection to mitigate Cryptosporidium and microbiological risks at Dunhampton source. This scheme will be complete by 30 April 2030 and will benefit 176,769 customers. |
| Far Baulker / Rufford Cryptosporidium | Installation of Ultra Filtration disinfection to mitigate Cryptosporidium and microbiological risks in the source water for the benefit of 236,040 consumers. | |
| Wildmoor Cryptosporidium | Installation of UV disinfection to mitigate Cryptosporidium and microbiological risks in the source water for the benefit of 225,174 consumers | |
| Rednal Cryptosporidium | Installation of UV disinfection to mitigate Cryptosporidium and microbiological risks in the source water to benefit 14,236 consumers. | |
| Edgmond Bridge Cryptosporidium | Installation of UV disinfection to mitigate Cryptosporidium and microbiological risks in the source water, benefitting 149,509 consumers. | |
| Laboratory Expansion | Expansion of laboratory for increased PFAS analytical capability. | |
| Southern Water | Emerging contaminants | The company are designing and implementing an emerging contaminants study, to improve their understanding of where emerging contaminants are present and their concentrations. This will result in detailed plans for further monitoring and interventions in future asset management periods. |
| South Staffordshire Water | Disinfection resilience upgrades | The company are implementing disinfection upgrades at various sites inclusive of a proactive movement to UV treatment in order to mitigate the potential risk of raw water quality deterioration, as well as improving resilience. In total, the upgrades of the treatment woks covered by this programme will benefit 1,391,555 consumers. |
| South West Water | PFAS and other emerging contaminants | The company are designing and completing several workstreams to gain insight into quantifying and validating the risk of PFAS and other emerging contaminants. This will result in detailed plans for further monitoring and proactive interventions in future asset management periods. |
Significant legal instrument revocations
In October 2016, United Utilities were served with a notice that formed part of the original transformation programme for the company. This notice encompassed all of its treated water storage tanks. The notice required the isolation, inspection and cleaning of all of these tanks, due to the high number that were, at the time, unable to be taken out of supply. As would be expected with such a large scope of a notice, it was altered several times along the way to account for difficulties encountered and additional works identified as needing to be done. The company was finally able to submit a completion report to the Inspectorate during the summer of 2024, and having been satisfied after assessment, the Inspectorate revoked the notice.
Completion of this notice represents a huge amount of work from the company, that has required consistent focus and investment of time and money for the last eight years. The Inspectorate was pleased at the continued effort put into this objective by the company. The result is a significant reduction in the risk being carried by the company in respect of its treated water storage assets. As well as reducing the risk of microbiological detections occurring in the future, it also ensures that when such detections do occur, the company will not be faced with some of the hard decisions companies have to take when faced with a public health risk from an asset in poor condition, but which cannot be taken out of supply.
Since this notice was served, similar notices have been served on several companies in order to achieve the same level of risk reduction (as reported in this series of reports).
In September 2018, Thames Water was served a notice, that formed a part of the company’s transformation programme. This large notice covered 95 treatment works, split into four sections, for risks associated with Cryptosporidium contamination. The first section of the notice required the company to review the type of monitoring in place at its treatment works, to understand appropriateness. The review concluded that large volume filtration using Idexx’s Filta-Max xpress system was an appropriate method for raw and treated groundwaters, as well as treated surface waters. The review was unclear, however, as to the value of moving away from calcium carbonate flocculation to large volume filtration for raw surface waters. This may be of interest to other companies, with similar water matrices and laboratory practices.
The second part of the notice required the company to complete a Hazard Review of the risk of Cryptosporidium entering the final water at all sites on a risk prioritisation basis. The hazard review was required to include compliance with the Expert Group on Cryptosporidium “Badenoch and Bouchier,” catchment surveys, a review of treatment processes for removal or inactivation of Cryptosporidium and a review of abstraction and reservoir management, amongst other items. The Hazard Reviews were submitted to the Inspectorate on a quarterly basis, beginning in July 2018 and continuing to September 2023. All were completed on time.
The third part of the notice required the company to use the outputs from the Hazard Reviews and reassess the requirements for continuous monitoring of Cryptosporidium for raw, in-process and treated water at all water treatment works. This began in March 2021 and was completed in November 2023, again on time. Findings from these reviews fed into the company’s Drinking Water Safety Plans, and informed sampling frequencies and requirements.
The fourth and final part of the notice required the company to use the findings from the Hazard Reviews, and identify any additional risk mitigation, or enhancement of current mitigation, to secure the long-term protection of public health. Some of the risk-mitigation implemented by the company was able to be done quickly, such as adding alarms or re-installing sampling cartridges. Other actions required long-term planning and investment, to mitigate the risks of Cryptosporidium, such as installing a second membrane plant at Datchet treatment works, or completing a slow-sand recirculation project at Kempton treatment works. Some risk-mitigation measures are being delivered under separate legal instruments, owing to the large amount of investment required, but all other mitigation work has now been completed. Ordinarily (as has been the case in other similar notices) the Inspectorate would expect to use the actions generated from the Hazard Reviews and serve a new legal instrument to ensure actions are captured and completed. This, however, was not needed in this instance, an indication of the commitment shown by the company. The notice remained the same version as when it was served, without the need to be changed. This is noteworthy, given its size and complexity, and again demonstrates the company’s commitment to mitigating the risks that this notice covered.