The House of Lords Industry and Regulators Committee has
criticised the Government’s “lack of leadership and deep-rooted
complacency” in the conclusion to its follow-up inquiry into
Ofwat, the water industry and the role of Government.
In a letter to Thérèse Coffey MP,
Secretary of State for Environment, Food and Rural Affairs,
the cross-party committee has set out a number of conclusions and
recommendations on a range of issues including: investment and
bills; financial resilience; wet wipes; future water supply; and
regulatory powers and resources.
While the committee acknowledges changes in water policy and
regulation since its March 2023 report: ‘The affluent and the
effluent: cleaning up the failures of water regulation’, it
criticises the “dismissive brevity and complacent tone” of the
Government’s response to the report.
In its letter, the Committee:
- warns that continued under-investment in water infrastructure
will have serious long-term consequences for the environment and
the security of water supplies, risking the possibility of future
water shortages;
- expresses doubt that the sector will be able to attract the
investment it needs, despite the publication of the National
Water Strategy;
- warns that water bills are likely to increase, and expresses
disappointment that the Government has not introduced a single
social tariff to ensure consistent support for those struggling
to pay their bills;
- expresses dismay with delays in banning wet wipes containing
plastics, delays which are unnecessary and deeply damaging to the
environment;
- concludes that Ofwat and the Environment Agency’s lack of
confidence is holding back nature- and catchment-based
approaches, in particular in relation to reducing storm overflow
discharges;
- concludes that proposals for reducing water demand are
insufficient to meet Government targets.
It calls on the Government to:
- set out what action it intends to take to increase investment
in the water sector;
- give clear guidance to Ofwat on the balance between
investment and the affordability of customer bills ahead of the
next Price Review;
- announce its proposals on social tariffs as soon as
possible;
- provide long-term, outcomes-based targets for the key areas
of investment needed in the sector, particularly in relation to
infrastructure investment;
- introduce compulsory water metering;
- set out whether it intends to introduce sustainable drainage
requirements in advance of any relaxation of nutrient neutrality
rules.
, Chair of the Industry and
Regulators Committee said:
“While the Government has begun to set out its vision
for the sector, our cross-party committee has concluded
unanimously that there is insufficient policy or drive to meet
the Government’s targets. Sadly, the only thing that is becoming
clear in the murky, polluted waters of the sewage crisis is a
lack of leadership and deep-rooted complacency.
The Government must therefore provide firmer policy detail and
greater guidance to regulators, who cannot be left to resolve
these huge challenges by themselves. In particular, the
Government must give clear guidance on the trade-off between
much-needed investment and the level of customer bills. We look
forward to the response from the Secretary of State, setting out
how she intends to do this.”
Strictly embargoed until 00:01 on Tuesday 19
September.
View and download the
embargoed letter here.
Notes to Editors
-
The Industry and Regulators
Committee considers matters relating to industry, including
the policies of His Majesty’s Government to promote industrial
growth, skills, and competitiveness, and to scrutinise the work
of UK regulators.
- On Wednesday the 22 March 2023, the committee published its
report ‘The affluent and the
effluent: cleaning up the failures of water
regulation’. The report concluded that a slurry of
under investment, insufficient government strategy, and
inadequate co-ordination has resulted in a failure to “treat
water with the care and importance it deserves”. The Government
responded on 5 June 2023.
