Ofwat is opening enforcement cases into four more water companies, meaning it is now investigating every single water and wastewater firm in England and Wales for the mismanagement of their networks and treatment.
The notices follow a what Ofwat described as a “detailed” analysis of information on firms’ environmental performance and data about the regularity of their spills from storm overflows.
The regulator believes the four firms may not be fulfilling their obligation to protect the environment and minimise pollution, meaning that it is now investigating all 11 water companies in England and Wales.
Investigations into Anglian Water, Northumbrian Water, South West Water and Thames Water, which last week was effectively placed into special measures by Ofwat, are ongoing from 2022, while Southern Water is still subject to monitoring following a case that dates back to 2019.
David Black, Ofwat’s chief executive, said: ““The fact that Ofwat now has enforcement cases with all 11 of the wastewater companies in England and Wales demonstrates how concerned we are about the sector’s environmental performance.
Privatised water companies discharged raw sewage into rivers and the sea around England and Wales for 3.6 million hours in 2023 – double the previous year’s total. For a sense of how bad the problem is today, check this map of the south-east of the UK which shows how much sewage water companies are dumping right now and for how long.
As a water researcher, I am happy to see water quality high on the political agenda but aggrieved that it is because of the sewage scandal that has engulfed the UK, and especially England and Wales, in the past couple of years.
Companies have discharged more raw sewage than they are legally allowed to and the Environment Agency, as responsible regulator in England, has been unable to monitor and control offenders as its environmental protection budget was halved between 2010 and 2020. Water firms have neglected to invest in new and enlarged wastewater treatment works for decades and so the ageing system is struggling to meet demand.
An angry public demands cleaner water and changes to how water companies are regulated and run. All major political parties have at least something to say about it in their pitch to voters ahead of July 4 general election.
No clear blue water between Tories and Labour
The Conservative party doesn’t mention the word “sewage” in its manifesto. The party instead highlights what it sees as the government’s achievements in reducing leaks from water pipes, preventing supply interruptions and raising the proportion of designated bathing water sites classified as “good” or “excellent” from 76% in 2010 to 90% in 2023.
These “achievements” are misleading, however. Most of the 451 designated bathing water sites are around the coast, not rivers. Bathing sites only occupy a small stretch of a river (of which many are rated poorly) and most sewage dumpings take place elsewhere along the river, which is not accounted for in the statistics the Tories present.
The party would ban executive bonuses if companies commit a serious criminal breach (dumping sewage, for example) and use fines to invest in river restoration. The Tories evidently expect pollution to keep increasing. Forget working on the cause of the problem and preventing “serious criminal breaches” from happening in the first place.
The Labour party has said it will force water companies to “clean up our rivers” by putting them under “special measures” but does not explain what this means. Like the Conservatives, Labour wants to impose fines on water companies, block the bonuses of executives and improve independent monitoring. Again, Labour offers no further detail on what that would entail.
This is in stark contrast to election campaigns fought under Jeremy Corbyn, when Labour argued for renationalising the water industry.
Both Labour and the Tories propose fines which have proven to be no deterrent. The Environment Agency fined Southern Water – the company that provides water and wastewater services to more than four million people across Hampshire, Sussex and Kent – a record £90 million in 2021, yet illegal sewage discharges by water companies have only increased since then.
Ultimately, fines are a capitulation before the real problem of preventing illegal sewage discharges.
Lib Dems a bit bolder
Banning water companies from dumping raw sewage into rivers and giving them a duty to protect the environment is the goal of the Liberal Democrats.
The Lib Dems want to transform water companies into public benefit companies (but there’s no explanation of how these would differ from their present privatised form) and would ban bonuses for water company executives until rivers are clean (but there’s no definition of “clean”).
Ofwat, the economic regulator for the water industry, would be replaced with a new regulator with powers to prevent sewage dumping. The party also wants a sewage tax on water company profits to enforce existing regulations more effectively, set legally binding targets on the reduction of sewage dumping, create wetlands to stymie flooding and strengthen local authorities monitoring water quality – it’s unclear how this would meld with a “tough new regulator”, though.
Greens are pro-nationalisation
The Green party wants to bring water services back into public ownership along with Britain’s big five energy companies.
The Greens are the only ones putting numbers to the problem. The party estimates renationalisation would cost £5 billion and investment into water and sewage infrastructure a further £12 billion.
The experiment of privatisation has failed, they argue, and water should be treated as a public good.
Reform’s 50% offer
Reform UK does not mention the sewage scandal directly, but its manifesto proposes bringing 50% of each utility back into public hands. According to the party, this would save £5 billion across all utilities over five years.
Welsh water for Wales
Plaid Cymru wants more public control of Welsh resources, including water.
Lots of water stored in Welsh reservoirs goes to England, especially Birmingham and Liverpool. Plaid Cymru would align legislative competence over water with the geographical boundaries of Wales. In other words, Wales wants to fully take care of its water and improve its quality.
What about Scotland and Northern Ireland?
The SNP does not mention freshwater in its manifesto. Sewage dumping appears to be less common in Scotland, where the water industry is publicly owned. However, reports suggest official estimates are too low.
Northern Ireland’s Sinn Féin does not discuss water in its manifesto. The DUP acknowledges pollution in the UK’s largest inland lake, Lough Neagh, and asks for a concerted effort to preserve its water quality.
Watered down
The smaller parties have my sympathies for bringing forward bolder plans for water management in the UK. Unfortunately, both the Conservatives and Labour are very uninspiring in their hesitance to prevent pollution.
If better regulation, monitoring and enforcement is the most a new UK government will do then this will require a bigger budget for the Environment Agency, at least. Measuring the volume and composition of sewage outflows, not just the duration of pollution events, would also provide more accurate information.
Ofwat, the economic regulator for the water industry, needs reform too. The UK water industry is slow to innovate and misses opportunities to do so. As I have written before, the UK water industry is a small sector with a revolving door that leads former regulators to join the regulated, and vice versa. This creates obvious conflicts of interest and stymies change.
The experience of England and Wales implies that privatised water utilities are a bad idea. Margaret Thatcher believed this model would find admirers globally, but since the late 1980s, no other country has followed suit. In fact, the opposite has tended to happen: after a failed privatisation, Paris returned its water supply services to public hands.
Privatisation has excluded the public from discussing water management in the past 35 years. It is time to reconnect people with the very resource we all need to survive. Capping a CEO’s bonus does not go far enough.
As a thankyou and a parting gift to Rishi Sunak and the Tories for the last 14 years of service, a Youth Demand supporter has ‘sunk the Bismarck’ in Rishi Sunak’s lake. Youth Demand is a campaign calling for a two-way arms embargo on Israel and for the incoming UK government to revoke all new oil and gas licences granted since 2021.
At around 12:50 pm, Oliver, 21, a student from Manchester visited Rishi Sunak’s North Yorkshire mansion and ‘murdered a brown snake’ in the multi-millionaires’ lake, whilst wearing a shirt emblazoned with ‘Eat Shit Rishi’. Police arrived on the scene almost immediately and detained four people, including a press photographer, which may lead to their arrest.
Before shitting in the lake, Oliver said:
“We have so much to thank the Tories for: from crumbling schools, shit in the rivers and a collapsing NHS; to creating a nation with more food banks than McDonalds and 4.3 million UK children living in poverty. From allowing their mates to get filthy rich from selling weapons to battle-test on toddlers in Gaza, or by drilling for more oil as the world burns – it’s quite a legacy!”
“Yet this shit-show is set to continue with yet another party led by a pathological liar who will be taking office next. Both Labour and the Tories are content to keep shitting on Gaza, and on every future generation, by continuing weapons trading with Israel and by not revoking all oil and gas licences granted since 2021. The two party system is just two cheeks of the same arse. We deserve better! Take action at youthdemand.org.”
A Youth Demand spokesperson said:
“From Number 10 to Number 2, let’s face it: he’s done a shit job, and the Tories are facing an electoral wipe-out. As a final goodbye, we’re issuing a ‘code-brown’ to Mr Sunak and his colleagues in government for 14 years of total failure, by delivering them some much needed moral fibre. They’ve landed us all up shit-creek and so we hope they accept these ‘gorilla fingers’ as a heartfelt gesture of our feelings towards them.”
“But although we’ve unloaded some timber, we’re not out of the woods yet. Our political system is broken. Labour has to lose the policies from the bottom-drawer and convince floating voters by putting the skids on arms trading with Israel and flushing all oil and gas projects licensed since 2021- policies which stain the UK’s reputation. It’s a big job, but it’s time to sort shit out. Join us for a week of action in London from the 13th July, sign up at youth demand.org.”
This mansion is one of several properties owned by Mr Sunak and his wife Akshata Murty. Murty owns a reported £400 million stake in her billionaire father’s company Infosys, which signed a $1.5 billion deal with BP in May 2023. Sunak and Murty bought the £2 million Grade-II listed Georgian manor house in the picturesque village of Kirby Sigston, before Mr Sunak became MP for Richmond in 2015. However, this isn’t the only property in the couple’s extensive repertoire, which include a £6.6 million mansion in Kensington, London, and a vacation home in California. The couple have an estimated combined net worth of £730 million.
Last year 16 Just Stop Oil supporters were arrested outside Sunak’s London Mansion, after Louise Harris sang her chart-topping track ‘We Tried’.
Young people are sick of the shit-show. We deserve better. People from all over the country are coming together to resist. Youth Demand will be taking action in Central London from the 13th-20th July.
“You weren’t expecting to go swimming this bank holiday weekend, anyway, were you?”
Coastal tourist hotspots in Wales should be teeming with people this Bank Holiday weekend. But instead, people are being told to avoid them because of sewage pollution.
Surfers Against Sewage, a leading UK marine conservation campaign charity, monitors water quality at over 450 river and coastal locations so people can swim, surf or splash without the risk of becoming ill. This week, the campaigners issued alerts that more than 25 beaches in Wales have been polluted by storm sewage or given a poor water classification.
Some of Wales’ most popular tourist destinations, including Criccieth, Tenby, Colwyn Bay, and Swansea, have been deemed as unsafe due to sewage pollution.
The campaigners warned how storm sewage had been discharged from sewer overflows within the past 48 hours at many beaches. They informed how short-term pollution is caused when heavy rainfall washes faecal material into the sea from livestock, sewage and urban drainage via streams and rivers.
Posting a report of the alerts on X, environmental campaigner Feargal Sharkey, who is vice chair of River Action, mocked: “You weren’t expecting to go swimming this bank holiday weekend anyway were you?”
Decision raises concerns about financial future of UK’s biggest water company
Investors at Thames Water have pulled the plug on £500m of emergency funding, raising concerns about the financial future of the country’s largest water company.
The beleaguered utilities firm announced this morning that its shareholders had refused to provide the first tranche of £750m funding set to secure its short-term cashflow, after the company had failed to meet certain conditions.
…
The crisis for Thames Water comes after devastating data on the scale of raw sewage discharges into rivers and seas this week.
Thames Water, who admit in their business plan they have been “sweating assets”, oversaw a 163% [increase?] in the duration of sewage dumping into rivers as their creaking infrastructure failed to cope with rainfall levels.
Thames is also at the centre of a major investigation by the water regulator Ofwat into sewage dumping from its treatment works, which could lead to massive financial penalties being imposed on the company.
…
Thames Water said on Wednesday that investors believed the conditions of funding had not been met and the £500m of new equity would not be handed over in the coming days.
A statement on behalf of Thames’s shareholders appeared to blame Ofwat: “After more than a year of negotiations with the regulator, Ofwat has not been prepared to provide the necessary regulatory support for a business plan which ultimately addresses the issues that Thames Water faces. As a result, shareholders are not in a position to provide further funding to Thames Water.
“Shareholders will work constructively with Thames Water, Ofwat and government on how to address the consequences of Ofwat’s decision.”