The company has begun a £523m upgrade of the sewage system
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A water company named as the worst pollution offender in the South says work is under way to stop the problem.
Southern Water was named by the Environment Agency in July as the most frequently prosecuted and highest fined water company in its southern region.
The company, which takes dirty water from 2m South-East homes, has now said a £523m sewage upgrade is under way to cut the number of incidents.
Water firms were the most prosecuted industry in 2004, the agency said.
Environment Agency regional director Howard Davidson said: "Southern Water is by far the most frequently prosecuted and highest fined company in our region."
He added: "We find this poor environmental performance unacceptable and are working closely with the company to find ways of addressing it."
But he said the annual report, published on 28 July, covered prosecutions in 2004, and that figures for 2005 had shown a fall in the number of pollution incidents and prosecutions.
Southern Water said that in the next five years, 97 treatment works and 740km of sewers would be refurbished or replaced.
£450m is being spent on the treatment works programme and £73m is being spent on sewers.
'Prompt action' promise
Southern Water's wastewater strategy manager John Spence said: "Pollution incidents are not acceptable and we are determined to do everything we can to prevent them from happening.
"We need to upgrade much of our older infrastructure to protect the environment and support huge environmental improvements we have made through investment in new systems during the past 15 years."
Mr Spence said the number of serious pollution incidents had been reduced by 25% in the last 12 months, from 24 to 18.
He said Southern Water was promising prompt action if incidents occurred in the future, to avoid long-term environmental damage.