Following the publication this morning of Ofwat's report on the performance of the water companies in England and Wales, the Environment Secretary has described the report as “extremely disappointing”, saying “the fact that not a single water company is classified as ‘leading’ is unacceptable.”
Commenting in a statement in response to the report, Environment Secretary Thérèse Coffey MP acknowledges that while there is “good work ongoing in some companies – cleaning up waterways and investing in vital infrastructure – there is simply not enough of it.”
“We have written to the CEOs of every water company in the lowest category of today’s 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 Government’s 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.”
The statement says that water companies are being pushed to go further and that the rules on bonuses and dividends have been changed to ensure billpayers do not reward pollution – or pay for what should already have been delivered.
Thérèse Coffey continued:
“Our water and sewerage systems are highly complex and under increasing pressure – but that is no excuse. The public has made it clear that a clean and plentiful water supply is a priority. Government 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.”
The statement draws attention to government action in the water industry, saying that the Government’s 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.”
As part of the Plan for Water, over £2.2 billion of new, accelerated investment will be directed into vital infrastructure to improve water quality and secure future supplies, with £1.7 billion of this being used to tackle storm overflows.
Thérèse Coffey said that all water companies have been asked to provide actions plans for every storm overflow in England which will be published shortly.
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