Secretary of State for Environment Food and Rural Affairs has today (11 July 2024)
announced a series of initial steps towards ending the crisis in
the water sector.
As Ofwat publishes its draft responses on water company spending,
the new measures represent a step change after years of failure
to ensure the water industry cuts illegal sewage dumping and
attracts major private-sector investment to upgrade
infrastructure while prioritising the interests of customers and
the environment.
This afternoon the Secretary of State will also meet with water
company Chief Executives to make clear that under this government
water companies will be answerable for their performance for
customers and the environment. He will set out his plans to work
in partnership with the sector and investors to attract
investment, jobs, and clean up the nation's polluted waterways.
He has today announced:
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He has written to Ofwat to ask them to make sure funding for
vital infrastructure investment is ringfenced and can only be
spent on upgrades benefiting customers and the environment.
He also wants Ofwat to ensure that when money for investment
is not spent, companies refund customers, with money never
allowed to be diverted for bonuses, dividends or salary
increases.
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Water companies will place customers and the environment at
the heart of their objectives. The Secretary of State is
clear that he expects companies to change their ‘Articles of
Association' – the rules governing each company – to make the
interests of customers and the environment a primary
objective.
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Consumers will gain new powers to hold water company bosses
to account through powerful new customer panels. For the
first time in history, customers will have the power to
summon board members and hold water executives to
account.
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Strengthened protection and compensation for households and
businesses when their basic water services are affected.
Subject to consultation, the amount of compensation customers
are legally entitled to when key standards are not met will
more than double. The payments will also be triggered by a
wider set of circumstances including Boil Water
Notices.
Secretary of State for Environment, Food and Rural
Affairs, said:
We will never look the other way while water companies pump
sewage into our rivers, lakes and seas.
This unacceptable destruction of our waterways should never have
been allowed, but change has now begun so it can never happen
again.
Today I have announced significant steps to clean up the water
industry to cut sewage pollution, protect customers and attract
investment to upgrade its crumbling infrastructure.
That change will take time. Over the coming weeks and months,
this Government will outline further steps to reform the water
sector and restore our rivers, lakes and seas to good
health.”
These steps sit alongside the Government's manifesto commitments
to put failing water companies under tough special measures to
clean up our waterways.
