Secretary of State for Environment, Food and Rural
Affairs, said:
“These findings are shocking. For too long, water companies have
pumped record levels of sewage into our rivers, lakes and
seas. This Government will never let this happen again.
“We have announced immediate steps to put water companies under
tough special measures and begin the work of cleaning up our
waterways.
“The Water (Special Measures) Bill will strengthen regulation to
turn the tide on the unacceptable destruction of our waterways,
ensuring water companies deliver for customers and the
environment and attract private-sector investment to upgrade our
crumbling infrastructure.
“Change will take time, and we will outline further legislation
to fundamentally transform our water industry and restore our
rivers, lakes and seas to good health.”
Background
- Parliamentary Under-Secretary of State will meet with the bosses of
the five water companies that received a 2-star rating, to hear
directly from them about how they plan to improve their
environmental performance.
- In his first week, the Secretary of State for Environment
Food and Rural Affairs has announced a series of
initial steps towards ending the crisis in the water sector:
- After writing to Ofwat, the Secretary of State has secured
agreement 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. Companies have agreed to change
their ‘Articles of Association' – the rules governing each
company – to make the interests of customers and the environment
a primary objective.
- Strengthen 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.
- In addition, the Water (Special Measures) Bill outlined in
the First Kings Speech will:
- Strengthen regulation to ensure water bosses face personal
criminal liability for lawbreaking.
- 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.
