New Water Bill Threatens Jail Time for Polluting Executives: A Step Towards Cleaner UK Waterways

Heads of water firms may risk jail under new stringent regulations

While numerous key initiatives were already declared, environmental organizations have tentatively praised the move as a crucial initial effort to address the pollution in the nation's rivers, lakes, and oceans.

Climate journalist @SeabrookClimate

Thursday, September 5, 2024, 12:

Under new proposals from the government, executives at water companies might risk a two-year jail sentence and could be prohibited from receiving bonuses, as part of an initiative to address the pollution of England's waterways with sewage, chemicals, and manure.

The recently introduced Water (Special Measures) Bill aims to strengthen weak regulatory bodies, enabling them to confront water companies that discharge sewage into rivers, lakes, and oceans, thereby addressing widespread public outrage.

In a recent announcement, Environment Secretary Steve Reed declared that a comprehensive evaluation of the water sector is scheduled. He emphasized that the purpose of this review is to overhaul the current flawed system and facilitate unprecedented levels of investment.

He opposed the idea of nationalizing the industry, citing cost concerns.

Many key initiatives had been previously revealed, yet environmental organizations have tentatively praised the additional information as a crucial initial move in tackling the pollution affecting the nation's rivers, lakes, and oceans.

However, it is acknowledged that considerable challenges remain with the waterways, and the government has recognized the necessity for broader reforms.

What is the purpose of the proposed water bill?

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Under the proposed legislation set to be implemented in the upcoming year, penalties would rise and water company executives who hinder or do not comply with inquiries, including delays in submitting required information, could face imprisonment for up to two years.

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

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

He stated, "With the current administration, water company executives will no longer 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 being developed.

Severn Trent 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 also require continuous surveillance of all sewage overflows and mandate that discharge occurrences be reported immediately, with information accessible to the public, particularly those wishing to swim or surf in the affected waters.

Nearly all of England's 14,000 storm overflows, which typically release sewage into rivers during heavy rainfall, are tracked. However, the majority of the extra 7,000 emergency overflows, activated by system breakdowns such as power failures, remain unmonitored.

The Environment Agency will now have the authority to charge water companies for the expenses incurred during investigations, as part of an effort to replenish the resources and skills that have diminished within the agency over the past ten years.

From 2009 to 2019, funding was slashed by 50%, leading to a significant drop in enforcement measures and the departure of numerous employees along with their crucial skills in addressing water issues. However, some resources were reinstated by the former Prime Minister, Rishi Sunak, in February.

Years of insufficient funding and the role of water companies contribute only partially to the issue.

The combination of an expanding population, intensified weather events due to climate change, agricultural contaminants, and reduced oversight has resulted in a critical condition for our water bodies.

Only 14% of rivers and lakes in England are considered to be in good ecological condition.

What has been the response from environmental organizations and the business sector

Shaun Spiers, the executive director of the think tank Green Alliance, commented, "This is a beneficial initial move that will tackle the public’s worries regarding the insufficient regulation of pollution by water companies."

However, he noted that figuring out the financing for the various upgrades, transformations, and environmental initiatives presents a "deeper challenge."

Ofwat has recently imposed a limit preventing water companies from increasing their charges by more than £94 over the coming five years, which is a third less than the increases the companies had initially requested.

They claim this funding is essential to address the issues, and it would be particularly beneficial for Labour, considering the restricted government budget available for infrastructure, environmental, and climate obligations.

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James Wallace, the head of River Action UK, expressed his satisfaction that the new administration is "addressing the terrible pollution affecting our rivers, recognizing it as a critical initial move."

However, 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 overseeing environmental matters suggested it might take additional steps regarding regulatory bodies, though it did not specify any deadlines.

Steve Reed stated that during this parliamentary session, the government plans to undertake comprehensive reforms to repair the dysfunctional water system, which includes enhancing infrastructure improvements and maintaining the water sector's appeal to investors.

A representative from Water UK concurred, noting, "The current state of the water system is indeed inadequate. We align with the government's viewpoint and emphasize the necessity for them to follow through on their commitments to fundamentally reform regulations and expedite investment."

"Ofwat must fully support our £105 billion funding proposal to ensure the stability of our water resources, foster economic development, and halt the discharge of sewage into our rivers and oceans."

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