Money from fines handed out to water companies that pollute our
rivers and seas will be re-invested in schemes that benefit our
natural environment, under new government plans.
Water companies were handed a record amount in fines for
pollution incidents last year as part of ongoing action to hold
rule-breakers to account.
Since 2015, the Environment Agency has concluded 56 prosecutions
against water and sewerage companies, securing fines of over
£141m.
At present, money from fines imposed by Ofwat and those arising
from Environment Agency prosecutions is returned to the Treasury.
Under the new plans, ringfenced funds will go to Defra and will
be invested directly back into environmental and water quality
improvement projects.
This could include initiatives to restore our water environments
by creating wetlands, re-vegetating river banks and reconnecting
meanders to the main channel of rivers.
Water Minister said:
“The volume of sewage being discharged into our waters is
unacceptable, and can cause significant harm to our wildlife and
sensitive habitats .
“It is right that water companies are made to pay when they break
the rules, but it is also right that this money is then
channelled back into improving water quality.
“Water company fines reached a record level last year, and moving
forward these plans will significantly increase funding that will
be used to recover, protect and enhance our natural environment.
“This is on top of the £56 billion investment we’re requiring
water companies to invest in improving our water infrastructure,
as well as holding them to account through tough new targets.”
Chancellor of the Exchequer, said:
“These fines hold rule-breaking companies to account and mean
record investment in our waterways.
“It comes on top of our requirement for water companies to invest
in the natural environment – raising the largest ever
environmental infrastructure investment of £56 billion over 25
years.”
To crack down on water pollution, government has boosted funding
for the Environment Agency, with £2.2 million per year
specifically for water company enforcement activity, including at
least 4,000 farm visits per year and 500 sewerage inspections.
Where water and sewerage companies are found to be breaking the
law, they will face substantial penalties.
This can include the Environment Agency imposing civil sanctions
or pursuing criminal prosecutions with the courts, for which
there can be unlimited fines, and in some cases prosecution of
CEOs and company directors where there is evidence against those
individuals and where it is in the public interest to prosecute.
Earlier this year, government announced plans to expand the use
of, and raise the cap on, the civil Variable Monetary Payments
that the Environment Agency can issue, meaning sanctions can be
imposed more often without lengthy and costly court cases.
Ofwat also has the power to issue fines up to 10% of a company’s
turnover for the affected business and order companies to take
the action necessary to return to compliance where they are in
breach.
The EA and Ofwat are currently carrying out the largest criminal
and civil investigations into water company sewage discharges
ever, at over 2200 treatment works, as a result of increased
monitoring.
Earlier this year the government published its Storm Overflows
Discharge Reduction Plan, which brought in strict targets on
sewage pollution and will require water companies to deliver the
largest infrastructure programme in their history to tackle storm
sewage discharges – a £56 billion capital investment over 25
years.
Further details on the plans will follow next year.
