New Water Bill Targets Company Bosses with Jail Time and Bonus Bans in Push to Clean Up Britain’s Polluted Waterways

Executives at water firms may risk jail under new stringent measures

While several key initiatives had already been disclosed, environmental organizations have tentatively praised the announcement as a significant initial move in the effort to purify the nation's polluted rivers, lakes, and oceans.

Climate journalist @SeabrookClimate

Thursday, September 5, 2024, 12:

Under new proposals from the government, executives of water companies might be imprisoned for up to two years and prohibited from receiving bonuses if they fail to address the pollution of England's water bodies with sewage, chemicals, and manure.

The recently introduced Water (Special Measures) Bill aims to strengthen weak regulatory bodies, enabling them to confront water firms that discharge sewage into bodies of water such as rivers, lakes, and oceans, in response to widespread public outrage.

Environment Secretary Steve Reed announced in a recent speech that there will be a comprehensive review of the water sector, aimed at overhauling the current flawed system to facilitate unprecedented levels of investment.

He contended that nationalizing the industry would be too expensive.

While several key initiatives had been previously unveiled, environmental organizations have tentatively praised the new information as a crucial initial move in the effort to purify the nation's polluted rivers, lakes, and oceans.

They acknowledge that significant improvements are still needed due to numerous issues with the waterways, and the government has recognized the necessity for broader changes.

What is the purpose of the proposed water bill?

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Legislation set to be enacted at the start of the next year proposes heightened penalties and may result in prison sentences of up to two years for water company executives who do not comply or hinder probes, for instance by delaying the submission of information.

Current laws permit the imprisonment of employers for various crimes, yet despite prevalent illegal activities, no convictions have been achieved, the government states.

Mr. Reed stated, "The public is outraged that in today's modern Britain, unprecedented amounts of sewage are being discharged into our rivers, lakes, and oceans. Following years of disregard, the condition of our water bodies has become intolerable."

He stated: "With the current administration, water company leaders will cease to enrich themselves at the expense of discharging this pollution."

Ofwat will have the authority to prohibit bonuses for water company executives if they fail to meet criteria related to environmental practices, customer service, and financial management, though the specifics of this system are still in development.

Severn Trent's CEO, Liz Garfield, received a bonus of £584,000 this year, even though the firm was penalized £2 million for negligently discharging sewage into the River Trent.

The legislation will additionally mandate the surveillance of all sewage spills and require that these incidents be reported immediately. This information will be accessible to the public, particularly benefiting those who may wish to swim or surf in the affected waters.

Despite nearly all of England's 14,000 storm overflows being tracked when they release sewage into rivers and streams, usually triggered by significant rainfall, the majority of the 7,000 extra emergency overflows, activated during incidents such as power failures, remain unmonitored.

The Environment Agency will now have the authority to charge water companies for the expenses of conducting investigations, as part of an effort to replenish the regulator's diminished resources and capabilities, which have eroded over the past ten years.

Between 2009 and 2019, budget reductions saw a 50% decrease in funding, leading to a significant drop in enforcement measures and the departure of numerous employees, along with their specialized knowledge in water-related issues. However, some resources were reinstated by former Prime Minister Rishi Sunak in February.

Years of insufficient funding and the role of water corporations contribute to only a portion of the issue.

Rising population numbers, increasingly severe weather due to climate change, agricultural contaminants, and reductions in regulatory oversight have collectively pushed rivers and streams into a critical condition.

Only 14% of water bodies in England are considered ecologically healthy.

How have environmental organizations and businesses responded?

Shaun Spiers, who leads the think tank Green Alliance, commented: "This initial action is beneficial and tackles the public's worries regarding insufficient oversight of pollution by water companies."

He stated that figuring out the financing for the numerous upgrades, modifications, and environmental and climate initiatives presents a "deeper challenge."

Recently, Ofwat imposed a restriction on water companies, limiting their bill increases to no more than £94 over the upcoming five years, which is a third less than the hikes the companies had initially requested.

Officials argue that this funding is essential to address the issues at hand, a resource that would greatly benefit Labour, especially considering the constrained budget available for infrastructure, environmental, and climate obligations.

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James Wallace, the CEO of River Action UK, expressed his satisfaction with the new government's acknowledgment of the severe pollution affecting our rivers, noting it as a significant initial move.

He demanded an immediate reassessment of the regulatory bodies.

"Discussing CEO bonuses won't resolve the issue. What's essential is to empower the Environment Agency as a regulator, by restoring its authority and its budget," he stated.

"Effective regulators are essential for the enforcement of these laws."

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The department responsible for environmental affairs suggested that more measures might be taken against regulatory bodies, though it did not specify any deadlines.

The administration is focused on implementing "broad reforms to mend the flawed water system" during this legislative term, according to Steve Reed, which includes enhancing infrastructure improvements and maintaining the water sector's appeal to investors.

A representative from Water UK expressed agreement with the government’s assessment that the current water system is ineffective. They emphasized that significant improvements would require the government to follow through on its commitments to overhaul regulations and accelerate investment.

Ofwat must fully support our £105 billion investment strategy to ensure the sustainability of our water resources, foster economic development, and stop sewage from contaminating our rivers and oceans.

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