BBCA water company has agreed to fund £11m worth of improvements to cut sewage spills across its network to avoid a fine by the regulator.
Wessex Water and its shareholders will pay for upgrades to reduce spills at storm overflow sites, extra monitoring equipment, and to help customers better manage rainwater at their properties.
The company proposed the package to avoid a £10m penalty after an Ofwat investigation found it had failed to adequately maintain and upgrade its waste water network.
Wessex Water and Ofwat said the deal would mean the money would be used for the benefit of its customers and the local environment, rather than going to HM Treasury.
None of the sum will be paid by customers or added to bills, Ofwat said.
A public consultation will now be held on the agreement before Ofwat makes it final decision to give it the go ahead.
Lynn Parker, senior director for enforcement at Ofwat, said Wessex Water’s lack of investment “meant there were spills from storm overflows when there shouldn’t have been”.
She added: “To their credit, the company has been one of the more proactive in investigating and rectifying the problems identified.
“However, there remain breaches which must be accounted for and corrected.”
A spokesperson for Wessex Water said: “We regret the impact our waste water performance has had on customers and the environment.
“When the issues at our treatment sites were identified we were quick to fix them, but we do agree that there is much more to do – particularly in areas where groundwater enters the sewerage network and can result in overflows operating long after rainfall events.”
“The proposals in this package will tackle the problem directly, sealing pipes on private land that we would not normally have powers over, as well as additional monitoring and initiatives like water butts and rain gardens to help customers treat rainwater as a valuable resource,” they added.
“This not only prevents pollution but also reduces the risk of sewer flooding for communities.”
The company said it was planning investment of £300m in its sewerage infrastructure by 2030, including expansion of key wastewater treatment sites.
It added that a key part of its strategy is to encourage sustainable rainwater management to prevent it overwhelming the sewage system during heavy rain.
Ofwat is conducting a country-wide investigation into failings by water companies, which has so far seen five providers pay £240m in redress packages.