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Regulation and Legislation

The Environment Agency is looking for water companies’ serious pollution incidents to “trend towards zero” by 2020, according to its annual Environmental Performance Assessment for all nine of England’s water and sewerage companies.

Ofwat's latest climate adaptation update report includes a commitment to introduce a new Bid Assessment Framework for the water companies to ensure that in-house solutions are not favoured at the expense of third party proposals.

Both the water sector and the regulator are facing "a challenging few years" with the opening of the retail market for business customers by April 2017, the 2019 price review, introducing new markets for sludge and water resources and potentially preparing for legislation and the introduction of a residential retail market in England, according to Ofwat's annual report and accounts for 2015/16.

Ofwat has today published its preliminary assessment of the costs and benefits of extending retail competition to household water customers – the research says customers would look to save an average of 25% for them to switch, a level of saving which the regulator said “is unlikely to be available.”

United Utilities Water Limited (UU) has been fined £600,000 and its contractor, KMI+ £333,000 at Bolton Crown Court on Friday 24 June 2016 after pleading guilty to polluting a brook with corrosive bleach.

The Drinking Water Inspectorate’s annual report for 2016 published today says the UK’s water supplies are among the healthiest in the world – with 99.96 per cent passing stringent standards.

Today’s launch of the first global Natural Capital Protocol provides a timely route map for the water sector to future natural capital regulation, which should help companies scale up their plans, according to Robert Spencer, Director of Sustainability at AECOM.

Water and Floods Minister Rory Stewart has told Parliament that once an incumbent leaves the market and the new entrant enters, the incumbent company would not then be able to come back into that market or an individual non-household customer move back and forth between their previous provider and the new one.

Ofwat has warned that a post-Brexit scenario which foresees higher inflation, lower interest rates and lower growth, at the same time as their customers become poorer and find it harder to pay their bills, could pose a very significant challenge for the water sector in terms of customer legitimacy.

In a case brought by the Environment Agency, a Dorset farm company has been ordered to pay almost £12,000 in fines and costs for polluting the same stream twice – first with slurry and then silage. The spills occurred within five months of each other.

Site operator, Greener For Life Energy Ltd, and site owner and permit holder Nomansland Biogas Ltd, both pleaded guilty at Exeter Magistrates’ Court last week to negligently polluting the watercourse last year and contravening the requirements of an environmental permit.

The water industry regulator has published a document setting out its conclusions on self-supply licences, in particular the exclusions and modifications that Ofwat said it is "minded to make to the standard conditions of the Water Supply and Sewerage Licenses (WSSL) for self-supply licensees."

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