During a two-year investigation of the utility company, regulator Ofwat found the firm had manipulating wastewater samples, as well as operational failures in sewage treatment sites. Customers of the utility company will now receive rebates of £61 over the next five years after Southern Water agreed to the punishment package. Southern Water will refund £123million to customers through their bills and pay a fine of £3million. The rebate includes £91million in penalties Southern Water had avoided and a further £32million of payments as recognition of its serious failures.
Southern Water customers will get a £17 rebate on their bills in 2020/21 and £11 in each of the following four years.
Ofwat found the company had failed to operate a number of wastewater treatment works properly.
This included not making the necessary investment, which led to equipment failures and spills of wastewater into the environment.
The package was reduced after Southern Water co-operated with the watchdog.
Ofwat chief executive Rachel Fletcher said: “What we found in this case is shocking.
“In all, it shows the company was being run with scant regard for its responsibilities to society and the environment.
“It was not just the poor operational performance, but the co-ordinated efforts to hide and deceive customers of the fact that are so troubling.”
She added: “It is now for Southern Water, under its new leadership, and with the improvements it is introducing, to show it has learnt from this unacceptable behaviour and can be trusted again.”
The Environment Agency is now investigating Southern Water and the environmental impact of its actions.
Southern Water chief executive Ian McAuley apologised to customers and said the firm had completed its own internal review.
He said: “We have fully supported these investigations and completed our own internal review, which has highlighted failures of people, processes and systems during that time.
“We are profoundly sorry for these failures and have been working very hard to understand past failings and implement the changes required to ensure we better deliver for our customers and meet the standards they deserve.”
Mr Mcauley was appointed in January 2017 to replace former boss Matthew Wright.
Oft said Southern Water has since pledged to ensure accurate monitoring and reporting is undertaken within the company.
The regulator said the firm had also put investment into its failing sewage sites, but will need to report to Ofwat on its progress on the commitments it has made.
Ms Fletcher added: “It is now for Southern Water, under its new leadership, and with the improvements it is introducing, to show it has learnt from this unacceptable behaviour and can be trusted again.”