Ofwat has found that Hafren Dyfrdwy breached its legal obligations in managing wastewater treatment works and sewerage infrastructure.
The company serves approximately 109,000 water and wastewater customers across north-east and mid-Wales.
Ofwat’s investigation identified failures to maintain adequate drainage capacity, manage sewage effectively and establish appropriate systems for monitoring compliance.
The regulator has proposed accepting a £280,000 environmental improvement package, funded by the company rather than customers.
The package includes two stormwater balancing tanks at Llansantffraid Sewage Pumping Station and a wetland restoration project at Llanfyllin.
Ofwat has also identified a potential financial penalty of £255,000, which it proposes not to impose if the alternative enforcement undertakings are accepted.
The regulator has opened a consultation, closing 6 November 2026, before making its final decision.
Why it matters: The findings raise questions about regulatory oversight, environmental protection and the performance of water companies serving Welsh communities.
The case follows separate enforcement action concerning Dŵr Cymru Welsh Water.
