Minister for Water and Flooding (): On 4 September, the
Government introduced the Water (Special Measures) Bill to
Parliament to deliver on our manifesto commitment to put water
companies under special measures to clean up our water. This
builds on the statement of 11 July, which set out our first steps
for ending the crisis in the water sector, and paves the way for
a review to shape further, transformative legislative change to
fundamentally transform how our water system works and clean up
our rivers, lakes and seas for good.
This Government will never look the other way while water
companies pump record levels of sewage into our rivers, lakes and
seas.
To deliver on the manifesto commitment to ‘block the payment of
bonuses to executives who pollute our waterways', the Bill will
provide Ofwat with a new power to establish rules for the water
industry relating to governance and remuneration.
The Bill also delivers on the manifesto commitment to ‘bring
criminal charges against persistent law breakers' by making
obstruction of the general investigatory powers of Environment
Agency, Natural Resources Wales and the Drinking Water
Inspectorate punishable by imprisonment; and by opening up new
routes for prosecuting executives.
To deliver on the manifesto commitment to ‘impose automatic and
severe fines for wrongdoing' the Bill will enable the Environment
Agency and Natural Resources Wales to issue automatic fines for
certain offences, ensuring water companies face rapid
repercussions where it is immediately clear they have acted
unlawfully.
To deliver on the manifesto commitment to ‘ensure independent
monitoring of every outlet', the Bill will place a requirement on
water companies to publish data on discharges from emergency
overflows in near real-time. This data will be independently
scrutinised by the regulators.
Finally, the Bill will also modernise and strengthen the water
industry Special Administrations Regime by introducing procedural
rights around winding up petitions, and providing powers to
recover the costs of special administration – bringing it in line
with other sectors, such as energy.
Taken together, these measures will turn around the performance
of the water industry and will be a first important step in
enabling long-term and transformative change across the water
sector.
However, I am clear that there are other fundamental challenges
facing the sector, which will not be addressed by this Bill
alone. A comprehensive reset is needed to restore our rivers,
lakes and seas to good health, deliver a resilient water supply
in the face of a changing climate, and ultimately ensure that the
water sector works for customers and the environment.
Therefore, to build on the critical first steps of the Water
(Special Measures) Bill, this Government will carry out a review
of the water sector regulatory system and will fundamentally
transform the water sector through future legislation. The review
will focus on the private regulatory model and will not change
plans for much needed investment in PR24. It will ensure that the
framework that underpins our water sector delivers long-term
stability, with incentives aligned to clear, achievable targets
that reflect the needs of customers and the environment at a
catchment, regional and national scale, supporting the
Government's growth mission. We will invite views from a range of
experts covering areas such as the environment, public health,
consumers, investors, engineering and economics, and this will
include a public consultation to test the proposals and bring in
a diverse range of views. Further details will be set out in the
Autumn.
