Environment Secretary Thérèse Coffey said:
“Major improvements are needed to deliver clean and plentiful
water now, and in the future – as the public and government have
rightly demanded. As we set out in our Plan for
Water, this sector needs more investment, stronger
regulation and tougher enforcement to drive the improvements we
all need to see.
“Funding this transformation requires making decisions for the
long term, and water companies will carry out the largest ever
environmental investment programme in water company history,
investing billions in new reservoirs for new homes, businesses
and for our farmers, as well as the £60 billion plan to tackle
sewage spills.
“We have the cleanest drinking water in the world but there is so
much more to be done on other issues which is why we developed
our Plan for Water and legislated to give regulators Ofwat and
the Environment Agency stronger powers on
enforcement and unlimited penalties.
“As part of the strengthened statutory process, Ofwat will now
independently scrutinise these plans for the next fifteen
months to ensure customers are getting the best value for
their money and that companies are delivering the improvements we
expect. There will be no changes to bills until 2025.
“I have been very clear with Ofwat, the
regulator, that customers should not pay the price for poor
performance and they should use the full powers we have given
them on behalf of consumers.
“Now is the time for water companies to
step up and deliver lasting changes for future
generations.”
Background:
Today (Monday 2 October), water companies are publishing draft
business plans which set out their proposed spending on
infrastructure and improvements to the water system from
2025-2030. We expect Ofwat, the regulator, to scrutinise these
plans to ensure they meet legal requirements and government
targets, to check families are not paying for what companies
should already have done, and to give customers the best value
for their money. Final plans will be agreed by Ofwat in December
2024 with changes to bills taking effect from April 2025.
The plans include how companies propose to invest in improving
water supply resilience and the environment, helping to make
rivers and beaches cleaner, reducing leaks and supply
interruptions and tackling issues like storm overflows. In turn,
this investment boosts economic growth and creates more jobs
across England and Wales.
The Government’s Plan for Water is transforming the water sector
through more investment, stronger regulation, and tougher
enforcement to deliver the clean and plentiful water the public
expects. We have given our regulators additional powers on
bonuses and dividends so that billpayers are not rewarding poor
performance, and last week it was confirmed that the worst
performing water companies must return money to consumers through
their bills.
