Welsh Water has been told to pay £40mn to customers after misleading regulators on leakage and water consumption over a five-year period.
Ofwat, the water regulator, said there had been significant failures of “governance and management oversight”, and that the company had “misled customers and regulators” over its “poor performance” on leakage and water use figures.
“It is simply indefensible and that is why we are making Welsh Water pay this £40mn to benefit its customers,” said David Black, chief executive of Ofwat.
Pete Perry, chief executive of Welsh Water, apologised. “We are very sorry that this happened,” he said.
The fine comes as water companies propose steep increases in customer bills for the five years to 2030.