BBC
Thames Water, Yorkshire Water and Northumbrian Water face £168m fines by the industry regulator over historic sewage spills.
The proposal will now go to public consultation and is the first announcement of Ofwat's largest ever investigation into water company performance.
The announcement on Wednesday comes amidst growing public anger over the environmental and financial performance of some water companies.
Sewage spills into England's rivers and seas more than doubled last year.
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