A “dramatic increase” in fines against water companies is expected as ministers introduce new automatic penalties for polluting firms from next year.
Automatic fines of around £10,000 will be linked to a new system of “open monitoring” announced by the Environment Secretary Steve Reed on Monday, sources told The i Paper.
Ministers have confirmed a series of reforms to the water industry in response to an independent review of the sector, led by former Bank of England deputy governor Sir Jon Cunliffe.
The reforms mark a win for The i Paper’s Save Britain’s Rivers campaign, which has called for a major overhaul of the regulation of water companies.
On Monday the commission published its final report, which included 88 recommendations on how the water industry could be reformed to get a grip on the sewage crisis.
The Government immediately accepted a number of recommendations, including the abolition of Ofwat and creation of a new “super regulator” to oversee firms.
Reed also said Labour would end the system of “self-monitoring”, which was introduced in 2009 and has allowed water companies to self-report their own pollution incidents.
Speaking in the Commons on Monday, Reed said water companies will no longer be able to “mark their own homework”.
The system will be replaced with a new system of “open monitoring”, which was promised in Labour’s election manifesto, that will allow the Government and the general public to see any illegal discharges in real time.
Whitehall sources said the new digital system of sewage monitoring will be linked to plans for new automatic fines due to be introduced next year and lead to a “dramatic increase” in automatic fines for pollution and other offences without the need for lengthy investigations.
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The i Paper understands that every time a water company commits a minor penalty they will attract an automatic fine of around £10,000. Such fines will be separate from the larger, more serious offences that can be unlimited in the amount of money they cost water companies.
Ministers are also immediately accepting the recommendation to establish a new ombudsman that will intervene in disputes between customers and water companies.
Reed said the Government would respond to the wider recommendations from the report in the Autumn.
The report was welcomed by some environmental groups, however concerns were raised over the suggestion that the UK might ditch tough EU standards for measuring river pollution.
The UK had continued to abide with some EU rules post-Brexit, including a legally binding 77 per cent of rivers in England will achieve ‘good’ ecological health by 2027.
However, England is widely expected to miss this target, with just 14 per cent of rivers in England currently meeting this target.
The Cunliffe review acknowledged that the 2027 target “will be missed” and suggested ministers “revisit the fundamentals” of the regulations going forward, including setting new UK-specific targets.
Richard Benwell, Chief Executive of Wildlife and Countryside Link, said it was “good” that the review was recommending new legally binding targets, but also voiced concerns about divergence with the EU.
“Moving away from the Water Framework Directive could leave us in a weaker situation than the EU,” he said, adding that there are already areas, such as the regulation of chemicals, where the UK has fallen behind post-Brexit.
Ali Morse, Water Policy Manager at The Wildlife Trusts also welcomed the commission’s report, but said there was “concern” about “potential changes to the overarching legislation that protects our waters”.
Reed pledged the new regulator would “stand firmly on the side of customers, investors and the environment”, as he said the Government would cut sewage pollution by half by 2030.
However, critics pointed out that Ofwat had previously pledged to cut sewage by 44 per cent over the same period.
Cunliffe suggested a new water regulator would take two years to set up after looking at the time frame for setting up Ofcom, the communications regulator, in the early 2000s.
Asked if ministers need to carry forward all of his 88 recommendations to ensure a full reset of the sector, he said: “I don’t think you’re going to solve the fundamental problem unless you tackle all of those issues.
“I think you can get improvement on all those dimensions, but I do think you need to address it all in order to move us to a different place.”
Water UK, which represents water companies, welcomed Cunliffe’s recommendations, saying they would “establish the foundations to secure our water supplies, support economic growth and end sewage entering our rivers and seas”.
Save Britain’s Rivers: how is Labour doing?
Before the 2024 General Election The i Paper outlined five things the new Government must do to Save Britain’s Rivers.
There have been some important wins for The i Paper and its readers, but much more is still needed to rid our waterways of pollution. Here’s how the Government is doing:
#1. RIVER HEALTH: 77 per cent of rivers in good health by 2027. 0/10
The i Paper asked the new Government to publish a plan outlining how the UK will meet its legal target of 77 per cent of rivers being in good health by 2027. Labour has not done this and the Government’s own watchdog has said meeting this target is unlikely.
#2. SEWAGE: Sewage spills will not damage high-priority areas – including bathing spots and nature sites – by 2030. 2/10
The i Paper asked the new Government to speed up the time it will take to rid sites such as bathing waters and protected nature spots from pollution. Labour has promised to halve sewage spills by 2030, but said nothing about prioritising nature sites.
#3. WATCHDOG: Regulators will stop water companies destroying the environment in pursuit of profit. 9/10
The i Paper asked the new Government to reform water industry regulators, with tougher powers to restrict bonuses and a ‘green duty’ for Ofwat. Labour has promised to abolish Ofwat and set up a new “super-regulator”.
#4. BATHING: Create 100 clean bathing spots in rivers by 2030. 6/10
The i Paper asked the new Government to ensure there are 100 official bathing spots in rivers by 2030 and to start monitoring water quality all-year-round. The Government has introduced changes to the regulations that could expand the period for which some sites are monitored, but it’s yet to be seen whether Labour will boost the total number of sites.
#5. FARMING: Farmers must be funded to improve water quality, and face enforcement action if they damage the environment. 6/10
The i Paper asked the new Government to fund farmers to help them improve water quality. Labour boosted the nature-friendly farming budget at the Spending Review, but it still falls short of what farmers and environmental groups have called for.
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