Water company bosses face prison sentences in new raid | Climate news

The heads of the water supply companies face up to two years in prison and a ban on accepting bonus payments following the new government's first major measures to combat English waterways contaminated with sewage, chemicals and liquid manure.

The new law on special measures in the water sector is intended to give weak regulators more power to take action against water companies that discharge wastewater into rivers, lakes and seas, thereby appeasing public discontent.

Although many basic measures had already been announced, the new details were warmly welcomed by environmental groups, who viewed them as an “important first step” in cleaning up the country's dirty rivers, lakes and seas.

However, they say there is still a long way to go, given the many other problems facing the waterways. The government has also acknowledged the need for “more comprehensive reforms”.

What would the new water bill do?

The bill, which could come into force in the new year, provides for higher fines and could result in water managers who do not cooperate or obstruct investigations, for example by not providing data in a timely manner, being jailed for up to two years.

Although bosses can face prison sentences for other offenses under existing laws, despite the “widespread illegality,” none of these offenses have yet been prosecuted, the government said.

Environment Secretary Steve Reed said: “The public is angry that in 21st century Britain, record amounts of sewage are being pumped into our rivers, lakes and seas. After years of neglect, our waterways are now in an unacceptable state.”

He added: “Under this administration, water managers will no longer line their pockets while pumping out this filth.”

Ofwat will also be able to withdraw premiums from water suppliers if they breach environmental, consumer and corporate finance standards, although a system for doing so has yet to be developed.

Severn Trent boss Liz Garfield received a £584,000 bonus this year, even though the company was fined £2 million for “reckless” wastewater disposal into the River Trent.

The bill also calls for monitoring all sewage overflows and real-time reporting of discharges, making the data available to the public who wish to swim or surf in these waters.

Although virtually all of England's 14,000 storm overflows are monitored for discharges of wastewater into waterways, often as a result of heavy rain, most of the additional 7,000 emergency overflows that release wastewater due to system failures such as power outages are currently unmonitored.

The environmental agency will be able to claim reimbursement for the costs of the investigation from the water supply companies. This will enable the agency to regain the resources and expertise that it has lost over the last decade.

With funding cut by half between 2009 and 2019, enforcement activity declined rapidly and thousands of staff left the country – and with them their expertise in dealing with water problems. However, previous Prime Minister Rishi Sunak restored some of the funding in February.

Decades of underinvestment and water corporations are only part of the problem.

A growing population, more extreme weather conditions due to climate change, pollution from agriculture and cuts to water management have combined to leave waterways in a devastating state.

Only 14% of England's rivers and lakes are in good ecological condition.

How have environmental groups and industry responded?

Shaun Spires, chief executive of the Thintank Green Alliance, said: “This is a useful first step and will address public concerns about inadequate regulation of water polluters.”

But figuring out how to finance all the modernizations, changes and climate and nature measures is a “bigger challenge,” he said.

Ofwat recently banned water suppliers from raising their bills by more than £94 over the next five years, a third less than planned.

They say they need this money to solve the problems, and Labour could really use it, as public finances are limited in terms of funding infrastructure and nature and climate commitments.

James Wallace, chief executive of River Action UK, said he was pleased that the new government was “taking this terrible pollution scourge on our rivers seriously. This is an important first step.”

However, he called for an “urgent review” of regulators.

“Talking about CEO bonuses will not solve the problem. What we really need is a regulator, the Environment Agency, that gets its enforcement power and its funding back,” he said.

“Without effective regulators, these laws cannot be enforced.”

Follow Sky News on WhatsApp

Stay up to date with all the latest news from the UK and around the world by following Sky News

Tap here

The Environment Ministry indicated that it would send further action to regulators, but declined to commit to a timeframe.

The government is seeking “more comprehensive reform to repair the broken water system” in this legislative session, said Steve Reed. This includes promoting infrastructure improvements and ensuring that the water industry remains attractive to investors.

A Water UK spokesman said: “We agree with the government that the water system is not working. To fix the problem, the government must deliver the two things it has promised: fundamental regulatory reform and an acceleration of investment.”

“Ofwat must fully support our £105 billion investment plan to secure our water supplies, enable economic growth and stop sewage flowing into our rivers and seas.”