Britain’s water regulator, Ofwat, has fined Thames Water a record-breaking £122.7 million ($165.36 million) for major legal failings. The penalty, announced Wednesday, is the largest ever

imposed by the regulator and surpasses an earlier proposed fine of £104.5 million.

Ofwat said the fine reflects the "unacceptable impact" Thames Water’s failures had on both the environment and its customers. Alongside the financial penalty, the regulator also issued an enforcement order requiring the utility to take corrective actions and ensure future compliance with its obligations.

“This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment,” said Ofwat Chief Executive David Black.

Thames Water, which serves 16 million people and is the UK’s largest water company, has been grappling with a massive debt burden. In February, it secured a £3 billion loan to avoid financial collapse. Ofwat noted that the company is now actively seeking new investors to support its financial recovery.

In response, Thames Water stated that its lenders remain supportive of its financial position and confirmed that efforts to raise additional equity are ongoing. “We take our responsibility towards the environment very seriously,” the company said. Photo by Jim Linwood, Wikimedia commons.