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Southern Water has admitted to supplying inadequately treated and disinfected water to more than 140,000 customers in the Swale and Medway area.
A representative of the water firm pleaded guilty to three charges when he appeared at Medway Magistrates' Court on Monday, May 17.
Southern Water was taken to court by the Drinking Water Inspectorate for breaching regulations relating to the quality of water from its Matts Hill supply works in Hartlip.
The company was fined £2,500 on each of three charges totalling £7,500 and agreed to pay £ 23,932.36 towards prosecution costs.
The breaches related to turbidity levels, a measure of the cloudiness of water.
Turbidity is most commonly caused by the number of chalk particles it contains when it is pumped from underground.
High levels of turbidity can affect the disinfection process, reducing the amount of chlorine in the water.
The company is now spending £5 million to improve treatment at the works and significantly reducing the risk of turbid water entering the supply.Southern Water said it apologised to its customers.