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Water Companies

Volume 450: debated on Friday 20 October 2006

To ask the Secretary of State for Environment, Food and Rural Affairs what percentage of annual turnover is the maximum fine that Ofwat may impose on a water utility company. (93977)

Section 48 of the Water Act 2003 provides enforcement authorities (the Secretary of State, the National Assembly for Wales and Ofwat) with powers to impose civil financial penalties on water and sewerage companies for certain breaches and contraventions.

Under this Act Ofwat is able to fine companies up to 10 per cent. of their annual turnover. Any financial penalty is paid into the Treasury’s consolidated fund.