The North East's water companies could be facing £64m of fines for historic sewage spills, regulator Ofwat has said. 

The water regulator has proposed a £47 million penalty for Yorkshire Water and £17 million for Northumbrian Water, as the first batch of results from its biggest-ever investigation into the industry.

The penalties relate to water firms’ management of their wastewater treatment and sewer systems, which have come under heavy criticism for releasing too much pollution into rivers.

Both companies have said they are "disappointed" with Ofwat's proposals, saying improvements have been made when issues arose. 

In the same announcement from Ofwat, a £104 fine for notorious water company Thames Water was proposed.  

It added that there was a “strong correlation” between high spill levels and operational issues at their wastewater treatment sites, “which points to these companies not having properly operated and maintained their wastewater treatment works”.

Ofwat said firms “failed to ensure that discharges of untreated wastewater from storm overflows occur only in exceptional circumstances, which has resulted in harm to the environment and their customers”.

It said the firms had not upgraded their assets where necessary and had been slow to grasp their obligations to limit pollution from storm overflows.

But water companies argue that "inconsistencies" have arisen between the proposed fines, Government policy, and Ofwat's past practice.

A spokesperson from Northumbrian Water said: "We are very disappointed by Ofwat’s decision to impose a penalty in respect of its Flow to Full Treatment investigation and don’t recognise some of the standards of compliance that Ofwat is enforcing.

"These are a departure from its previous practice and appear inconsistent with those of the Environment Agency and the Government and with Ofwat’s own practice in the past. 

"We’re working really hard to continue to deliver for customers and the environment and will continue to comply with and exceed Government regulations."

A Yorkshire Water spokesperson said:  “We take our responsibility to protect the environment very seriously. Last year, we apologised for not acting quickly enough and announced our £180m programme to reduce discharges from our storm overflows before April 2025.

“We are disappointed with Ofwat’s response to their investigation into our wastewater treatment networks. Since the start of this process in November 2021, we have cooperated fully with the investigation and we will continue to seek clarity on their Draft Penalty and Enforcement notice. We will be responding to the notice by 10th September. 

“We and our customers care deeply about river health and we want to provide reassurance that we have already taken considerable action to improve.

"For the past two years we have been industry-leading for our wastewater treatment works compliance, we have more robust processes and procedures in place, and we have finished work at 10 storm overflows with 44 on-site, and 66 due to start soon as part of our £180m investment programme.

"Our business plan for 2025-2030, which is currently being reviewed by Ofwat, proposes our largest environmental investment of £7.8bn.”