YESTERDAY (5 Sept 2024) the Secretary of State for Environment, Food and Rural Affairs, Steve Reed, introduce the Water (Special Measures) Bill for England and Wales to Parliament.
This follows the announcement Mr Reed made in his first week to:
- ringfence funding for vital infrastructure upgrades that benefit customers and the environment only
- ensure where money for investment is not spent, companies will refund it to their customers.
- create customer panels with the power to summon board members and hold water executives to account
- strengthen protection and compensation for households and businesses when their basic water services are affected, and a consultation on doubling the compensation customers are entitled to when their water supply is interrupted.
Announcements in new Bill
At his speech this week, held at the Thames Rowing Club, Mr Reed said:
The Bill represents a significant increase in enforcement powers for the water regulators so they can take tougher and faster action to protect customers and the environment. It will make sure the water companies are held to account.
He went on to confirm that where there is persistent law-breaking, the Bill will make it easier for the Environment Agency to bring criminal charges against the water executives doing so. These tougher penalties would apply when companies “fail to co-operate or obstruct Environment Agency and Drinking Water Inspectorate investigations”.
Offences will be triable in both the Crown and Magistrates’ Courts, where previously the punishment in most cases was merely a fine.
Bonuses
Water bosses bonuses are also under scrutiny with the Bill giving the utilities regulator Ofwat new powers to ban them unless senior staff meet high standards when it comes to protecting the environment, their consumers, financial resilience and criminal liability.
Mr Reed added:
Since 2020, water chief executives have paid themselves over £41 million pounds in bonuses, benefits and incentives – despite the damage their companies have been causing. They will no longer get away with polluting our rivers, lakes and seas – and then awarding themselves a bonus.
Other measures include independent monitoring of all sewage outlets and emergency overflows with real-time monitoring publicly available within the hour.
But, Mr Reed also noted the need for private investment to support infrastructure improvements that will support growing human population; water storage to aid future supply; and proactive planning for climate change impacts such as drought and flooding.
Our comment
In response to the speech, our CEO Dr Laurence Couldrick said:
We are pleased to see our calls for a catchment-level approach to tackle pollution sources such as chemicals, agriculture and road run-off noted as a necessary way to work towards improvement.
The Government’s commitment this autumn to consider further legislation to transform how our water system works and clean up our rivers, lakes and seas for good is also welcomed. Yet, we know there is still much to be done.
We will continue to work collaboratively, using the best available science to underpin what we do and remain optimistic that these ongoing reforms will make a positive impact on our rivers in the near and long-term future.
You can read the full speech at: gov.uk/government/speeches/steve-reed-speech-on-the-water-special-measures-bill
You can see the full Bill at: gov.uk/government/publications/water-special-measures-bill-policy-statement