Water company executives in England and Wales could face prison sentences and be stripped of bonuses under new government legislation aimed at tackling pollution. The proposed Water (Special Measures) Bill grants regulators more authority to penalize companies that pollute water bodies and makes it easier to fine them for environmental breaches.
The move comes after widespread public outrage over water companies continuing to dump sewage into rivers, lakes, and seas while paying their executives multi-million-pound salaries. Environment Secretary Steve Reed said the new measures would “end the disgraceful behaviour of water companies and their bosses.”
However, some environmental campaigners have criticized the legislation, with one calling it mere “window dressing” and arguing that it fails to address deeper, systemic issues within the industry.
New Powers and Penalties
Under the new legislation, executives of water companies could face up to two years in prison if they obstruct investigations or fail to cooperate with regulators. The burden of proof in civil cases will also be lowered, enabling the Environment Agency to more easily bring forward criminal charges against those responsible for pollution.
One of the key measures in the bill is the ability to stop bonus payments to water company executives who fail to meet environmental, financial, and consumer standards. “Banning the payment of bonuses for bosses who are overseeing failure and making them personally criminally liable if they refuse to comply with investigations will focus them on cleaning up our rivers, not lining their pockets,” Reed said.
The bill comes in response to increasing public frustration over the state of England’s waterways. Last year, a BBC investigation revealed that major water companies in England were discharging raw sewage during dry weather, a practice that is potentially illegal. The cumulative sewage spills in 2022 added up to 3.6 million hours, highlighting a widespread problem in the sector. Only 14% of England’s rivers currently meet the standard for good ecological health.
Campaigners Unimpressed
Despite the strong rhetoric from the government, some campaigners are not convinced the measures will make a significant difference. Charles Watson of River Action told the BBC that the real issue is not a lack of regulations but the failure of existing regulators, such as Ofwat and the Environment Agency, to enforce them effectively.
“If the secretary of state believes that the few one-off actions announced today, such as curtailing bosses’ bonuses however appealing they may sound, are going to fix the underlying causes of our poisoned waterways, then he needs to think again,” Watson said.
While Watson acknowledged that the government’s recognition of the pollution crisis was a step forward, he expressed concern that the proposed measures would not fundamentally change the situation. He criticized the government for introducing a plan that would cost them “nothing” and claimed that the system itself was broken.
Regarding the threat of jail time for water bosses, Watson dismissed it as “random,” stating that it was unlikely any executive would actually face imprisonment for obstructing an investigation.
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Political Criticism
Opposition parties have also weighed in, with the Conservatives accusing the Labour-led government of repackaging measures that were already introduced under their administration. Robbie Moore, the Conservative shadow environment minister, said, “Labour are attempting to pass off measures implemented under the Conservatives—like banning bonuses for water company bosses whose companies commit serious breaches—as their own.”
The Liberal Democrats were equally critical, stating that the bill “doesn’t look up to scratch” in addressing the sewage scandal. They argued that a complete overhaul of the water industry and tougher regulation would be necessary to end the crisis in England’s waterways.
Industry Response
In response to the new legislation, Water UK, which represents the water companies, agreed that the current system was “not working.” They called for support from the regulator, Ofwat, for their £105 billion, five-year investment plan aimed at upgrading water and sewage infrastructure. However, the funding would likely result in higher customer bills, and negotiations with Ofwat about potential price increases are ongoing.
Decades of under-investment have left England’s sewage systems frequently unable to cope with heavy rainfall, leading to frequent spills of untreated sewage into natural water bodies. The new legislation aims to address some of these problems, but many believe a more comprehensive approach is needed to tackle the long-standing issues in the industry.
