Water companies have been allowed to dump sewage illegally for years because ministers and regulators have failed to enforce environmental laws, an investigation has found.
The Department for Environment, Food and Rural Affairs (Defra), the Environment Agency (EA) and Ofwat all failed in their separate duties to monitor unlawful sewage dumping, according to a four-year investigation by the Office for Environmental Protection (OEP), which ensures public bodies comply with environmental rules.
The findings were described as “scandalous” and a “devastating verdict” for England’s environmental regulators.
Labour’s independent review of the water sector to fix the sewage crisis – in which the fate of regulators will be a key issue – is likely to take note of the investigation.
The bodies will now need to update their guidance and environmental permits to ensure water companies stop dumping sewage outside of a few exceptional circumstances.
The dire state of Britain’s rivers, lakes and seas is causing anger among the public who are due to find out how much their water bills will go up by, as firms raise money to tackle sewage leaks.
Sewage pollution has made Britain’s rivers uninhabitable for humans and wildlife. High levels of e.coli at popular swim spots have made swimmers sick, while fish populations have dwindled as a result of sewage spills.
Regulators including the Environment Agency and Ofwat have been criticised as “toothless”, and blamed for failing to prevent water companies from dumping huge volumes of sewage into waterways.
Firms dump untreated sewage into rivers from points in their networks known as combined sewer overflows (CSOs) to prevent the system backing up and flooding people’s homes and businesses.
The law states they are only allowed to do this during periods of exceptional rainfall, but firms have repeatedly been accused of dumping outside of these circumstances; water companies in England collectively discharged untreated waste 464,056 times last year.
The OEP launched an investigation into the matter in 2021 following a complaint by the campaign group WildFish.
It uncovered multiple instances where Defra, Ofwat and the EA have failed to comply with their duties in providing guidance, permits and enforcement for the use of CSOs in line with the law.
For example, it found Defra issued guidance for water companies and regulators that did not reflect firms’ full legal duties when it comes to releasing sewage.
Meanwhile, Ofwat failed to issue enforcement orders against rule-breaking companies and the EA issued permits to water companies that were insufficient to ensure compliance with the law.
Earlier this year an investigation by The i Paper revealed hundreds of the permits used by water companies to dump sewage had not been updated for decades, including some from the 1950s.
“What the OEP”s announcement has clarified is that much of the storm sewage pollution that is plaguing English rivers would not be occurring had Government and regulators done their jobs properly,” said Guy Linley-Adams, solicitor for WildFish.
Water companies have faced much of the public’s wrath for the dire pollution in Britain’s waterways, but the OEP’s findings reveal firms were working within a context of some of these spills being effectively sanctioned by the guidance and permits issued by environmental regulators.
Charles Watson, the chair and founder of River Action, said: “The OEP’s findings offer yet another devastating verdict of the total failure of environmental regulation in our country. It is nothing short of scandalous that our environmental regulators and the Government department that funds and instructs them, have failed to take proper account of environmental law in their policing of the water industry.
'Thames Water sent me a £10k bill for a leaking pipe - I don't know where it is'
Read More“Even worse is the conclusion that these bodies have failed in their legal duties to take the necessary enforcement actions against water companies in response to the daily unlawful dumping of raw sewage into our rivers.
“Given this appalling failure of law enforcement, the very bodies responsible for protecting our rivers instead of imposing meaningful deterrents to prevent river pollution are essentially providing the water industry with an incentive to carry on polluting at will.”
The i Paper’s Save Britain’s Rivers campaign has been calling for major reform to water company regulators
In October, the Government announced an independent review of the sector, saying it will amount to the biggest shake-up of the industry since privatisation. Ofwat could be abolished under the review.
Helen Venn, the OEP’s Chief Regulatory Officer, said the three public bodies have taken “positive steps… to address the issues identified”.
This includes a series of enforcement notices issued by Ofwat against water companies for sewage spills, which could result in three firms being fined a collective £168m.
The OEP has outlined a number of other steps for the public bodies to take. They have been given two months to respond and confirm if they are going to take these steps before the OEP considers whether court action is necessary.
On Thursday Ofwat will outline how much water companies will be allowed to increase their bills by over the next five years to help tackle the sewage crisis.
Water companies have announced plans to invest over £100bn up to 2030 in their crumbling infrastructure, but have said this will involve increasing bills by around £150 per year, depending on the firm.
Ofwat has indicated it will allow bill increases, but not at the level requested by water companies.
An EA spokesperson said: “We recognise regulation of the water industry needs to improve, which is why we are transforming our approach with more people, powers and data alongside better training for our staff. This is ensuring we have a water system fit for people and the environment.
“We’ve also made significant progress in addressing the issues identified by the OEP and are consulting on updates to our permitting approach and regulatory framework for storm overflows.”
A spokesperson for Ofwat said it was “actively taking steps to remedy the issues the OEP has identified”.
The regulator has launched an enforcement investigation into all wastewater companies, which could result in firms being fined millions.
Ofwat added: “On Thursday we will announce our final decisions on spending by water companies over the next five years in England and Wales. This will not only include unprecedented levels of investment but will see a significant increase in environmental performance targets for water companies and a tangible improvement to infrastructure that will be felt by customers and campaigners alike.”
A Labour spokesperson said: “Once again the truth about the Conservatives’ utter failure to regulate the water industry is laid bare. The result of their catastrophic policies has left record levels of sewage pollution in Britain’s rivers, lakes, and seas.
“As part of our Plan for Change, the Labour government has acted decisively to place water companies under special measures, with new powers to ban bonuses and bring criminal charges against polluting water bosses.”
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