Secretary of State for Environment, Food and Rural Affairs
(): The new Government will never
look the other way while water companies pump record levels of
sewage into our rivers, lakes and seas. That is why we have
outlined our immediate measures to begin the work to clean up our
waterways.
First steps to clean up our rivers, lakes and
seas
The Government has announced a series of initial steps towards
ending the crisis in the water sector.
The new measures represent a step change to ensure the water
industry cuts sewage dumping and attracts major private-sector
investment to upgrade infrastructure while prioritising the
interests of customers and the environment. The initial measures
include:
- Securing agreement from Ofwat that funding for vital
infrastructure investment is ringfenced and can only be spent on
upgrades benefiting customers and the environment. Ofwat will
also 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.
- Water companies will place customers and the environment at
the heart of their objectives by changing their ‘Articles of
Association' – the rules governing each company – to make the
interests of customers and the environment a primary objective.
- 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.
- Strengthening 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.
Water (Special Measures) Bill
Yesterday, the Government went further in The King's Speech
announcing the intention to introduce a new Bill to put water
companies under special measures to strengthen regulation as a
first step to clean up our rivers, lakes and seas.
The Water (Special Measures) Bill will:
- Strengthen regulation to make water company executives
criminally liable for severe failure.
- Give the water regulator new powers to ban the payment of
bonuses if environmental standards are not met.
- Boost accountability for water executives through a new ‘code
of conduct' for water companies, so customers can summon board
members and hold executives to account.
- Introduce new powers to bring automatic and severe fines.
- Require water companies to install real-time monitors at
every sewage outlet with data independently scrutinised by the
water regulators.
These measures will strengthen the enforcement regime and make
clear that the new Government will not tolerate poor performance
across the water sector. These measures will strengthen the
enforcement regime and make clear that the new Government will
not tolerate poor performance across the water sector.
The Government will outline further legislation to fundamentally
transform and reset our water industry and restore our rivers,
lakes and seas to good health.
