Northumbrian Water has agreed to pay £550,000 following unauthorised sewage discharges at two treatment works.
The enforcement undertakings follow pollution incidents at Sedgeletch Sewage Treatment Works in Houghton-le-Spring, Sunderland, in September 2020 and Lanchester Sewage Treatment Works in County Durham in April 2021.
Both incidents involved unauthorised sewage discharges into nearby watercourses.
Rachael Caldwell, water industry regulation manager for the Environment Agency in the North East, said: "It’s unacceptable that water companies continue to pollute our watercourses.
"We expect compliance and we will take action where we see breaches.
"We always consider enforcement options on a case by case basis, and these civil sanctions allow wrongdoings to be corrected while contributing to environmental improvements.
"This £550,000 will be invested back into the local area to enhance the environment, bringing real benefits for people and wildlife.
"We are continuing to drive meaningful improvements in water company performance, clean up waterways and crackdown on persistent offenders."
The Environment Agency accepted two enforcement undertakings from Northumbrian Water.
The company will contribute £350,000 to the Wear Rivers Trust for the Sedgeletch incident.
This discharge polluted up to 5.5km of Moors Burn, though the full impact was not solely attributed to the water company due to other pollution sources.
The funding will support habitat restoration at Old Durham Beck.
A further £200,000 will go to Durham Wildlife Trust following a discharge from Lanchester STW into Smallhope Burn.
Sampling revealed ammonia levels above permitted limits, and the Environment Agency found there was no ecological impact on the watercourse.
The company attributed the breach to unusual dry and cold weather and has since invested approximately £7 million in improvements at the site.
In addition to the financial contributions, Northumbrian Water has carried out remediation at both locations.
At Sedgeletch, the company has changed on-site procedures and installed telemetry systems, where plans for a new three-kilometre pipeline into the River Wear have recently moved ahead.
At Lanchester, significant upgrades have been made to ensure future compliance.
Enforcement undertakings are legally binding agreements requiring the company to prevent repeat incidents and address the harm caused.
They are used when the Environment Agency believes the offer protects, restores, or enhances the environment and avoids lengthy court proceedings.
The Environment Agency continues to prosecute organisations for the most serious cases with high culpability and environmental harm.
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Over the past year, water companies have contributed a record £8.5 million to environmental restoration through enforcement undertakings, nearly double the previous year.
The Sedgeletch incident was traced to a 21-minute unpermitted discharge from a storm overflow, which was not quickly reported to the Environment Agency.
Northumbrian Water has since changed its on-site procedures and installed new telemetry which triggers an immediate callout to issues at the STW.
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