Latest news with #sewagespills
The Guardian
4 hours ago
- Politics
- The Guardian
Ministers vow to tackle all forms of water pollution in England and Wales
Ministers will take action to tackle all forms of water pollution in England and Wales, the government has promised, as the sector awaits the findings of a report on the water industry on Monday. The commitment by Steve Reed, the environment secretary, aims to highlight that, while sewage spills into waterways are a significant source of public concern, runoff from farms and roads also makes up a critical part of the pollutants going into rivers and other bodies of water. A report on the water industry in England and Wales, led by Sir Jon Cunliffe, a former deputy governor of the Bank of England, is due to be published on Monday morning, and is expected to recommend the abolition of Ofwat, the water industry regulator. Reed is expected to take on the Sunday morning broadcast round for the government, with ministers under increasing pressure to act after data on Friday showed serious pollution incidents involving water companies rose by 60% in 2024 compared with the previous year. According to the Environment Agency's statistics, of the 75 serious incidents more than 80% were due to three companies: Thames Water, Southern Water and Yorkshire Water. All three said they were taking action to improve their performances. After Monday's report, ministers are expected to roll out new measures to tackle other significant causes of water pollution. They plan to tackle agricultural runoffs, which are mainly connected to animal waste or fertiliser residues running into rivers and can often cause high levels of nitrogen and phosphorus in rivers, cresting toxic algal blooms. This year, the environment secretary announced plans to loosen regulation for chicken farms and came in for heavy criticism from green groups, who said the changes could worsen water pollution. According to an analysis by the Independent Water Commission for its interim report, published last month, 45% of water bodies in England are affected by pollutants from agriculture – slightly more than the 44% affected by runoff from the water industry. The same study said nearly 20% of water bodies saw pollutants from roads and transport, including oil, chemicals and the residues from tyre and brake wear, a problem made worse by heavy rain. A more minor contributor, but one that can last a long time, is the effect of chemicals in metals mines contaminating groundwater, even many years after they have closed. While the number of Environment Agency inspections of farms has increased, ministers are planning more action, including new measures to limit the impact from mining. Sign up to Down to Earth The planet's most important stories. Get all the week's environment news - the good, the bad and the essential after newsletter promotion Reed said: 'Pollution from sewage, agriculture and vehicles is poisoning our rivers. We are cracking down on sewage pollution from water companies, but we need to tackle all sources of pollution, including from farming. That's the only way to clean up our country's rivers, lakes and seas.' The political pressure over waterways pollution, particularly connected to sewage spills, is intense, with polls showing consistent support for re-nationalising the industry, which the government has ruled out, and for jailing water bosses responsible for pollution. The Liberal Democrats have campaigned particularly hard on pollution in rivers, streams and coastal areas, with the subject forming a key element of the party's election campaign last year.
Telegraph
15 hours ago
- Business
- Telegraph
Water regulator to be scrapped as sewage spills soar
While it is understood that ministers have not yet received the final report, which will be published on Monday, Sir Jon's interim report last month criticised 'deep-rooted, systemic' problems across the water industry, laying the blame at the door of both companies and regulators. Ofwat has been criticised for its part in failing to prevent sewage spills and then allowing water companies to put up bills by almost £10 a month on average to fund improvements in environmental standards. The regulator has also been criticised for failing to hold Thames Water to account before it slipped into crisis. Thames Water nationalisation Britain's largest water company – Thames Water, which is saddled with debt – faces the prospect of government control, with its boss warning this week that it will take at least a decade to turn the company around. Environment Agency figures showed a sharp jump in pollution incidents in England, with Thames Water, Southern Water and Yorkshire Water the worst offenders. Ofwat declined to comment, while a government spokesman said: 'We are not going to comment on speculation'. Mark Lloyd, chief executive of the Rivers Trust, which represents trusts across the country, welcomed the proposed overhaul. He said: 'The problem for Government is clear: economic and environmental regulation of the water industry has been very muddled since privatisation and is the root cause of many of the issues with the sector. 'Greater clarity, consistency, certainty and accountability of regulation are urgently needed for water companies to improve their performance and to attract investment. They therefore face a choice between reforming the current regulatory framework to make it work better or creating a new, single regulator.' Thames bondholders also welcomed proposals to scrap Ofwat, pointing to the regulator's failure to rein in Thames Water's debt binge.
The Guardian
21 hours ago
- Business
- The Guardian
Ofwat to be abolished as ministers explore creating new water regulator
England and Wales' embattled water regulator will be abolished under recommendations from a government-commissioned review due on Monday, the Guardian understands. Ministers will next week announce a consultation into creating a new regulator, to coincide with the results of a review into the water industry directed by former Bank of England deputy governor Sir Jon Cunliffe. This consultation is likely to conclude in the abolishment of Ofwat, the embattled watchdog that polices how much water companies can charge for their services in England and Wales, sources said. Ofwat has faced intense criticism over its failure to prevent sewage spills, hefty payment of dividends and ballooning debts across England and Wales's water companies. The review will recommend creation of new regulatory system. Cunliffe's review was set up by the government amid growing public anger about record sewage spills and rising bills, as well as the fraying finances of some of the biggest companies. It was announced as the largest review of the sector since its privatisation under Margaret Thatcher. At the launch of the review last year, environment secretary Steve Reed said it would 'shape new legislation to reform the water sector so it properly serves the interests of customers and the environment.' Critics of Ofwat have said the regulator presided over a culture of underinvestment in water infrastructure and financial mismanagement by water companies since its creation in 1989. The most troubling case for the government is the UK's largest water company, Thames Water, which is loaded with £20bn in debt and struggling to stave off financial collapse. Thames Water is in talks with Ofwat over a takeover by creditors who hold much of its debt, and is trying to secure leniency from fines and penalties. Should those negotiations fail, it is likely to fall into temporary state ownership via the special administration regime. Cunliffe warned in his interim review that the current regulatory system, including Ofwat, had 'largely lost public trust'. Industry leaders have also long bemoaned a lack of coherence in water regulation, with different regulators and agencies doubling up on areas of investigation. This has made it hard to have timely decisions, allowing probes to drag on rather than prevent or address environmental harm and pollution. Cunliffe had also suggested 'fundamental, structural options for integrating regulatory remits and functions'. Currently, there are three regulators for water – Ofwat, the Environment Agency and the Drinking Water Inspectorate. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Water campaigner and former Undertones frontman Feargal Sharkey said: 'The bonfire of the quangos in the industry needs to go further, we need remedial and radical action and we demand it now. 'A regulator that has never been prepared to acknowledge its role at the epicentre of greed corruption and incompetence is just as guilty as any water company of polluting rivers and exploiting customers.' A government spokesperson said: 'We do not comment on speculation'. Insiders at Ofwat have expressed concern that scrapping the regulator without a clear plan for the future could add to uncertainty at a sensitive time for investment. However, sources said they supported combining some different investigatory and punishment powers within one regulator – even if it cost them their jobs. One insider said 'simply scrapping Ofwat would not be a quick fix'. 'If this were an easy way to avoid putting Thames Water into special administration, I think the government would have done it already,' they added. A senior Whitehall source said they feared the politicisation of regulatory changes could make it harder to attract investment for the water industry in the short and medium term. 'Investors need to know what they are buying,' they said. 'That includes regulation.' On Friday it was revealed serious pollution incidents by water companies were up 60% last year compared with the year before. The total number of serious pollution incidents in 2024 was 75, up from 47 in 2023, Environment Agency figures showed. Of these, 81% (61) were caused by three companies: Thames Water (33), Southern Water (15) and Yorkshire Water (13). Thames Water's serious incidents more than doubled from 14 to 33. Ofwat declined to comment.
Bloomberg
3 days ago
- Business
- Bloomberg
Why Thames Water Is at Risk of Nationalization as Debt Crisis Drags On
Britain's water industry is bracing for the biggest overhaul since privatization in 1989 amid a scandal over systematic sewage spills and chronic pipe leaks. Customers are set to shoulder the cost of fixing the problems through the largest ever bill increases for households and businesses. The crisis follows decades of poor regulatory oversight that allowed water company owners to pay themselves billions of pounds in dividends instead of using the money to maintain the infrastructure. Things are so bad that Thames Water Utilities Ltd., which serves a quarter of England, is in talks to restructure its heavy debts and find a new owner to avoid falling into temporary state ownership.
The Guardian
5 days ago
- Business
- The Guardian
English water firm doubles CEO's pay despite ‘elevated concern' over finances
A water company serving 3.9 million customers in London and south-east England has doubled the pay of its chief executive, despite the regulator saying it had 'elevated concern' over its financial situation. Affinity Water said its chief executive, Keith Haslett, received £1.6m for the 2024-25 financial year, up from £709,000 the year before. Bosses' pay at privately owned water companies has been under intense scrutiny in recent years as the public and politicians expressed increasing anger over leaking infrastructure and sewage spills into rivers. Campaigners have criticised high pay for executives for a service which is essential for life, and over which they hold monopolies in each area. It also emerged this week that Severn Trent, which supplies an area covering Bristol to the Humber, and mid-Wales to the East Midlands, awarded its chief executive, Liv Garfield, £3.3m for the 2025 financial year. Affinity Water provides water services only to customers mainly to the north and west of London, including parts of Hertfordshire and Surrey, as well as parts of Essex and Kent. Affinity is owned by the German insurer Allianz, the FTSE 250-listed infrastructure fund HICL, and DIF, part of the US private equity fund CVC. In November Ofwat, the water regulator for England and Wales, said it had 'elevated concern' over its finances because of debt levels equivalent to 75% of the value of its assets – above the 60% Ofwat targets – and the failure of its owners to invest in line with a previous business plan. However, the shareholders in February agreed to invest £150m, easing the financial pressures. The pay increase for Haslett, which emerged in its annual report published last week, was mainly due to a new 'retention payment' of £503,000. He was also awarded an extra £251,000 under a new long-term incentive plan, while his annual bonus increased 29% to £350,000. That was on top of a base salary and other benefits worth £449,000. The company's remuneration committee noted the 'unprecedented level of adverse public and political sentiment' around high pay for executives. The bosses of six water companies – Thames Water, Anglian Water, Southern Water, United Utilities, Wessex Water and Yorkshire Water – were banned from receiving bonuses last month because of sewage spills. However, Affinity does not provide sewage services, meaning it is less likely to be caught by the ban. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The report also showed that the chief financial officer, Adam Stephens, received £298,000 for three months' work, having joined the business in January. A Severn Trent spokesperson told the Telegraph, which first reported on Garfield's pay: 'We're the only company to receive the highest four-star status for environmental performance for the fifth consecutive year, and our £15bn business plan to invest was rated outstanding by the regulator. 'Executive pay is based on performance and Severn Trent are consistently recognised as leaders.' Affinity Water was approached for comment.
