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Environment Secretary statement on Ofwat performance report

Following the publication of Ofwat's performance report the following statement has been issued by the Environment Secretary

This was published under the 2022 to 2024 Sunak Conservative government

A picture of a reservoir in Yorkshire

This morning, Ofwat has its Performance Report on the water sector, announcing that water companies will need to return 拢114m to customers for underperformance.

Environment Secretary Th茅r猫se Coffey:

Today바카라 사이트檚 Ofwat report is extremely disappointing. While I acknowledge there is good work ongoing in some companies 바카라 사이트� cleaning up waterways and investing in vital infrastructure 바카라 사이트� there is simply not enough of it. The fact that not a single water company is classified as 바카라 사이트榣eading바카라 사이트� is unacceptable.

바카라 사이트淲e have written to the CEOs of every water company in the lowest category of today바카라 사이트檚 report and my ministerial team and I will meet them in person to scrutinise their improvement plans.

Billpayers should know we require the worst performers to return money directly to customers through their bills.

The 바카라 사이트바카라 사이트檚 Plan for Water sets out how more investment, stronger regulation and tougher enforcement will transform the current system. I have been clear if these companies do not make improvements across a range of different measures, we and our regulators will not hesitate to use our powers to enforce it.

We are pushing water companies to go further and have changed the rules on bonuses and dividends to ensure billpayers do not reward pollution 바카라 사이트� or pay for what should already have been delivered.

Our water and sewerage systems are highly complex and under increasing pressure 바카라 사이트� but that is no excuse. The public has made it clear that a clean and plentiful water supply is a priority. 바카라 사이트 and regulators will be closely securitising upcoming business plans to ensure they deliver the best possible deal for customers, the environment and our future water needs.

Factsheet on government action in the water industry

The 바카라 사이트바카라 사이트檚 Plan for Water sets out how more investment, stronger regulation and tougher enforcement is holding water companies to account and ensuring we have a water sector fit for the future.

More investment

  • As part of the Plan for Water, over 拢2.2 billion of new, accelerated investment will be directed into vital infrastructure to improve water quality and secure future supplies, with 拢1.7bn of this being used to tackle storm overflows.
  • All water companies have been asked to provide actions plans for every storm overflow in England which we will publish shortly.
  • We have set stringent targets for water companies to reduce storm overflows 바카라 사이트� driving the largest infrastructure programme in water company history of 拢60 billion over 25 years. This includes front-loading action in particularly important and sensitive sites, including bathing waters.
  • In a recent on this plan, the 바카라 사이트 won on all claims considered by the High Court, meaning the plans were considered lawful by the High Court. The ruling also outlined that the 바카라 사이트바카라 사이트檚 plan goes 바카라 사이트榮ubstantially바카라 사이트� further than the law to drive a reduction in storm overflow discharges.

Stronger regulation

  • We are driving up monitoring and transparency so the public can see what is going on 바카라 사이트� we have increased the number of storm overflows monitored across the network from 7% in 2010, to 91% now, and with 100% expected by the end of the year.
  • We are clear water companies must not profit from environmental damage and we have given Ofwat increased powers under the Environment Act 2021 to hold them account for poor performance.
    • On dividends: Using new powers granted to Ofwat by the government, Ofwat is ensuring company dividends are linked to environmental performance.
    • On bonuses for water company executives: Ofwat has outlined a new measure to ensure customers do not fund (via water bills) executive bonus payments where they have not been sufficiently earned through the company바카라 사이트檚 performance.

Tougher enforcement

  • Since 2015, the Environment Agency has concluded 65 prosecutions, securing record fines of over 拢150 million against water companies. The Environment Agency has also launched the largest criminal investigation into unpermitted water company sewage discharges ever at over 2,200 treatment works.
  • We are also scrapping the cap on civil penalties and significantly broadening their scope to target a much wider range of offences. This is toughening our enforcement tools and expanding where regulators can use them. This will deliver a proportionate punishment for operators that breach their permits and harm our rivers, seas and precious habitats.
  • In 2022, 93% of bathing waters met the highest standards of 바카라 사이트榞ood바카라 사이트� or 바카라 사이트榚xcellent바카라 사이트�, up from just 76% in 2010 and despite stricter standards being introduced in 2015.

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Published 26 September 2023