WESSEX WATER will pay £11 million towards the cost of network upgrades after the industry watchdog found it had failed to manage its wastewater system properly.

The company, which serves around 2.9 million customers across the south-west of England, agreed to the enforcement package following an Ofwat investigation.

The regulator confirmed that the costs would be covered by shareholders, rather than passed on to customers through bills.

Ofwat found that Wessex Water had failed to operate, maintain and upgrade its wastewater network so that it could cope with flows of sewage and wastewater.

The package will fund a range of improvements, including work with private landowners to seal sewer pipes and reduce the amount of groundwater entering the system.

Investment will also be brought forward to cut spills at specific storm overflow sites.

Further funding will be used to install monitoring equipment and to support customers in managing rainwater more sustainably at their properties.

Ofwat said the case was the sixth completed as part of its wider wastewater investigation, which has resulted in £250 million in fines and enforcement packages.

Wessex Water said that it regretted the impact of its poor wastewater performance and that it planned to invest £300 million in sewerage infrastructure by 2030.