Farming News - DEFRA: Sec of State on ofwat penalties
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DEFRA: Sec of State on ofwat penalties
Secretary of State for Environment, Food and Rural Affairs, Steve Reed said:
"I welcome Ofwat's action today. The unacceptable destruction of our waterways should never have been allowed - and it is right that those responsible for illegally polluting our rivers, lakes and seas face the consequences.
"This Government will fundamentally reform the water sector. We have announced our first steps to clean up the water industry in our Water (Special Measures) Bill, to cut sewage pollution, protect customers and attract investment to upgrade its crumbling infrastructure.
"We will outline further legislation to transform and reset our water industry and restore our rivers, lakes and seas to good health."
Background briefing:
- Last month Ofwat set out proposals for the biggest ever investment in the water sector – £88 billion to clean up our water and invest in the necessary infrastructure. This is the second biggest investment in the economy in this Parliament.
- This investigation is the responsibility of Ofwat as the independent economic regulator, and is separate to the Environment Agency's ongoing criminal investigation into discharges at wastewater treatment works.
- In his first week in post, the Secretary of State for Environment outlined a series of new measures to ensure water companies clean up their act. This includes securing 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.
- The Water (Special Measures) Bill, announced in the King's 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.