The UK government has introduced new legislation aimed at holding water company executives accountable for pollution and environmental damage, with measures that mark the most significant increase in enforcement powers in over a decade. The Water (Special Measures) Bill, introduced to Parliament, seeks to crack down on water companies responsible for polluting rivers, lakes, and seas, and imposes severe penalties on executives who fail to meet environmental standards.
The Bill grants regulators the ability to take faster and tougher action against water firms that damage the environment or fail their customers. It also expands the powers of the Environment Agency, allowing it to bring criminal charges against executives who obstruct investigations or fail to cooperate, with penalties including imprisonment.
Environment Secretary Steve Reed is set to outline the government’s plans to overhaul the water sector in a speech on Thursday, 5th September, at the Thames Rowing Club. Reed’s address will highlight the urgent need to address the state of the UK’s waterways, which have suffered from years of neglect and record levels of sewage discharge.
Reed said, “The public are furious that, in 21st century Britain, record levels of sewage are being pumped into our rivers, lakes, and seas. Under this government, water executives will no longer be allowed to line their own pockets while causing environmental damage. If they refuse to comply, they could face prison.”
The Bill aims to deliver on the government’s promises to clean up the water sector. This includes granting the Environment Agency greater powers to criminally prosecute water executives for persistent environmental offences. Since privatisation, only three individuals have been criminally prosecuted for such failings.
One of the key provisions of the Bill is a ban on performance-related bonuses for water company executives who fail to meet high standards regarding environmental protection, consumer rights, and financial stability. Water company bosses have collectively paid themselves over £41 million in bonuses since 2020, despite overseeing poor environmental performance.
The legislation also introduces automatic fines for offences, streamlining the process for regulators to impose penalties for a range of infractions. Currently, regulators face lengthy investigations before being able to issue financial penalties, even for minor offences. Under the new system, penalties can be issued based on civil standards, enabling quicker enforcement without exhaustive investigations. The value of these fines will be significantly increased, with specific details to be set out in secondary legislation.
Another key measure is the introduction of independent monitoring of all emergency sewage outlets. Water companies will be required to publish real-time data on discharges, allowing the public and regulators to hold them accountable. This transparency is expected to aid investigations and drive improvements across the industry.
In addition to the Bill, further reforms are planned to fundamentally transform the way the water industry operates. The government has already secured agreements with Ofwat, the industry regulator, to ringfence funds for infrastructure upgrades. Future legislation will aim to speed up these upgrades, ensure resilient water supplies, and boost investment to tackle pollution.
This first piece of water legislation is part of a broader government strategy to clean up the nation’s waterways, increase transparency, and reform the sector to prevent future environmental damage.