Secretary of State for Environment, Food and Rural
Affairs, said:
“Today's water bill rises are the result of years of
failure.
“The new Government will force water companies to tackle illegal
sewage dumping into our rivers, lakes and seas. Firm action
should have been taken much earlier to ensure money was spent on
fixing the sewage system, not syphoned off for bonuses and
dividends.
“The decisive steps set out today mean this will never be allowed
to happen again.
“After meetings with water bosses this afternoon, they have now
signed up to my initial package of reforms as we work towards
cleaning up our water, prioritising the interests of water
customers and the environment, and fixing our broken sewage
system.”
On background
- This afternoon the Secretary of State for Environment, Food
& Rural Affairs met with representatives of 16
water companies across England & Wales. Companies have now
signed up to the Government's initial package of reforms:
- 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.
-
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.
-
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.
- These steps sit alongside the Government's manifesto
commitments to put failing water companies under tough special
measures to clean up our waterways.
