Thames Water tops a list of water companies under criminal invest
igation for pollution by the UK government, a move that could complicate efforts to turn around the beleaguered British utility.
The firm, which serves about a quarter of the UK, faces 31 out of the 81 investigations opened into the sector since July last y
ear, the Environment Agency said Tuesday. The inquiry, the largest suc
h action ever taken against the country’s water companies, is part o
f a broader crackdown on pollution that could lead to multimillion pound fines and as much as five-year prison terms for water bosses.
“This will act as a powerful deterrent,” the Environment Agency said in a statement, forcing the utilities to focus on “investing to upgr
ade water infrastructure to clean up our rivers, lakes and seas.”
Read more: UK Water Bosses Face Up to Two Years in Prison for Polluting
The UK water sector h
as been roiled by crises following decades of poor regulatory oversi
ght that allowed company owners to pay themselves billions of pounds in dividends instead of improving infrastructu
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re. Water pollution was a key issue in last year’s election as untreated sewage entered English waters for a record 3.61 million
hours just as water bills were hiked to help curb pollution.
Other companies ranking high on the government’s list include Anglian
Water, facing 22 investigations. Currently, there are seven cases set to go to court over the next few months, the agency added.
The move comes as Thames, Britain’s largest water and sewage firm, is looking to restructure its nearly £20 billion ($26.7 billion) debt pile while injecting new equity. It has said the burden of heavy fines could hamper its efforts to turn around its finances and recapitalize the business.