United Kingdom
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What's the underlying problem that's causing water companies to go down this route? Has there been a chronic lack of investment over the years and now they aren't keeping up with demand and having to dump it instead of process it?
Not lack of investment, lack of expenditure in favour of payouts to shareholders instead.
https://www.bbc.co.uk/news/articles/cw4478wnjdpo
That does appear to be the case, yes.
There's also a lack of funding for the regulator which means the BBC is the one finding these spills, not the agency that's responsible for tracking then.