Committee publication · Correspondence · 10 April 2025

Correspondence from Natural Resources Wales regarding investigations into water companies in Wales, dated 6 April 2025

From: Environment, Food and Rural Affairs Committee

Inquiry: Reforming the water sector

Summary

Natural Resources Wales (NRW) reports on its enforcement actions against water companies in Wales since 2015 in response to the Environment, Food and Rural Affairs Committee's water sector inquiry. Between January 2015 and March 2025, NRW opened 713 enforcement cases (661 against Welsh Water), with 660 closed and 47 open. Court fines totalled £295,000, declining from £650,000 in 2023 to £150,000 in 2024.

Key findings

  • NRW opened 713 enforcement cases against water companies between 2015–2025; 661 targeted Dŵr Cymru Welsh Water (DCWW), demonstrating sustained regulatory activity
  • As of 11 March 2025, 47 enforcement cases remain open against DCWW and Hafren Dyfrdwy, with six open notices to monitor compliance
  • Enforcement outcomes show 495 formal warnings issued, 87 cases closed with no further action, and only 3 successful prosecutions; advisory and guidance-based interventions (53 cases) are preferred for minor offences
  • Court-imposed fines fell sharply from £650,000 in 2023 to £150,000 in 2024, alongside decreased legal costs awarded to NRW
  • NRW applies risk-based enforcement prioritising restorative actions and voluntary compliance for minor breaches; prosecution reserved for serious crimes and environmental harms

Tone

Factual

Topics

water-regulationenvironmental-enforcementwater-companiesregulatory-compliance

Key actors

Natural Resources Wales (NRW), Dŵr Cymru Welsh Water (DCWW), Hafren Dyfrdwy, Environment, Food and Rural Affairs Committee, Alistair Carmichael, Ceri Davies, Environment Agency, Welsh Government

Notable line

… fines levied by the courts in 2024 reduced to £150,000 from over £650,000 in 2023 …

Key Quotes

Between 1 January 2015 and 11 March 2025, NRW opened 713 enforcement cases against water companies, with 661 against DCWW
Natural Resources Wales · enforcement activity baseline
We are unable to provide details on specific ongoing enforcement cases, to prevent the risk of prejudice of ongoing proceedings.
Natural Resources Wales · transparency limitations on open cases
Our choice of enforcement tool depends on the severity and nature of the offence, as well as the willingness of the offender to comply with regulatory requirements.
Natural Resources Wales · enforcement methodology
Prosecution is a deterrent and protective approach for the most serious crimes and harms.
Natural Resources Wales · justification for criminal prosecution as enforcement tool
… show that the total fines levied by the courts in 2024 reduced to £150,000 from over £650,000 in 2023, with the legal and other costs awarded to NRW also decreasing.
Ceri Davies · penalty trends and cost recovery
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Source · parliament.uk record ↗