THE WELSH LIB DEMS have called for a complete overhaul of the water industry following news that Dŵr Cymru Welsh Water is set to pay a proposed £44.7m fine after regulators found serious breaches in its operations.

The penalty has been proposed by water regulator Ofwat, which said its investigation uncovered “serious and unacceptable” failures in the company’s sewage and network services.

Responding to the announcement, Jane Dodds, leader of the Welsh Liberal Democrats, said the situation highlighted long-standing problems within the water industry.

She said: “Communities across Wales are sick of hearing apologies whilst raw sewage continues to pollute our rivers.”

Dodds added that enforcement against water companies had been too weak for decades, allowing environmental problems to persist.

“For decades, there has been far too little enforcement when water companies have failed,” she said. “That is why the Welsh Liberal Democrats have led the calls over the last several years for Ofwat to be replaced with a tough new Welsh regulator with real powers to prevent sewage dumping and hold polluters properly to account, alongside a ban on executive bonuses.”

Welsh Conservative Shadow Cabinet Secretary for Climate Change and the Environment, Janet Finch-Saunders MS said: “Dŵr Cymru customers will be frustrated to see bills rising while Ofwat has now found serious and unacceptable failures in how the company has operated and maintained its sewage network.

“This £44.7 million enforcement package raises a fundamental question for customers across Wales: what exactly are they paying for? Dŵr Cymru’s bill increases were supposed to deliver improved infrastructure and reduce sewage discharges, yet Wales continues to experience some of the worst pollution incidents in the UK.

“With Wales experiencing far higher levels of sewage discharges than England, the continued inaction from both Dŵr Cymru and the Labour Welsh Government is compromising our waterways and failing communities who rightly expect better.”

The proposed fine follows an investigation by Ofwat into Welsh Water’s handling of sewage and wider network services. The regulator said the breaches were serious enough to warrant significant financial penalties.

The Liberal Democrats say the case demonstrates the need for stronger oversight and reforms to the current regulatory system governing water companies in Wales.

Environmental campaigners have long warned that sewage discharges are harming rivers and coastal waters across Wales, while critics argue that stronger enforcement and regulation are needed to prevent further pollution incidents.

A Welsh Water spokesperson said: “We accept the findings of Ofwat’s investigation and apologise for where we have fallen short of the standards that our customers and regulators rightly expect from us.

“We have started a major transformation programme across the company, including within our wastewater services, focused on improving performance, strengthening operational oversight and accelerating investment to deliver better outcomes for rivers and coastal waters.

“The investigation has considered both historic and more recent compliance, and we accept that improvements are needed. We have already taken steps to strengthen our governance, oversight and compliance arrangements as part of a wider transformation programme across the business.

“We have also agreed a £44.7 million redress package with Ofwat which will direct funding towards environmental improvements and actions to reduce the impact of storm overflows.

“As part of this package, nearly £40.6 million will fund additional work to reduce spills from specific storm overflows and tackle groundwater entering the sewer network — a major cause of frequent spills. This will include targeted investment at priority sites as well as investigations and improvement work on parts of the sewer network to reduce infiltration.

“A further £4.1 million will be invested to help improve river water quality in extremely sensitive catchments. This will include establishing a new £1 million Cymuned Natur Fund to support community groups and charities across our operating area that are working to protect and enhance the natural environment.

“These actions are in addition to the £4.2 billion we are investing between 2025 and 2030, including £2.5 billion dedicated to environmental improvements — with £889 million specifically targeted at improving storm overflows.”

Ofwat’s findings and the proposed penalty are expected to intensify the ongoing political debate over how water services should be regulated and managed in Wales.