Three major water companies illegally discharged sewage hundreds of times last year on days when it was not raining, a BBC investigation suggests.
The practice, known as “dry spilling”, is banned because it can lead to higher concentrations of sewage in waterways.
Thames, Wessex and Southern Water appear to have collectively released sewage in dry spills for 3,500 hours in 2022 – in breach of their permits.
Water UK, the industry body, said the spills “should be investigated”.
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Collectively throughout 2022, Thames, Southern and Wessex illegally started releasing sewage on dry days 388 times – research by the BBC’s climate and data teams suggests – including during last summer when these regions were in drought.
There even appears to have been spills by all three companies on 19 July 2022, the hottest day on record, when temperatures topped 40C in some places and many people tried to cool off in rivers.
Green groups enraged by ministers’ plans to ditch nutrient neutrality requirements for housebuilders have warned that it could lead some rivers to ‘total ecological collapse’
Feargal Sharkey, the pop star turned river campaigner, and Craig Bennett, head of the Wildlife Trusts, are among those who have blasted the Government over its plans.
Mr Bennett said: “They lied – this is a disgraceful move which undermines public trust in this Government.”
Meanwhile, the RSPB warned that removing the rules could lead to “total ecological collapse” for some rivers.
Ministers spent much of this year promising not to weaken environmental regulations in its efforts to scrap European regulations. Yet on Tuesday morning, it announced that nutrient neutrality laws would be ditched to unblock housing developments.
Parliamentary committees need to investigate water company accounting, especially as they are continuing with the practices that brought down Carillion.
Image of a burst water main.
Prem Sikka is an Emeritus Professor of Accounting at the University of Essex and the University of Sheffield, a Labour member of the House of Lords, and Contributing Editor at Left Foot Forward.
Ever since its privatisation in 1989, the water and sewage industry in England and Wales has set new standards in ripping people off.
Profits are made by not plugging water leaks and by dumping tons of sewage in rivers and seas. More than one trillion litres of water is lost to leaks from crumbling pipes each year. In 2022, raw sewage was dumped into rivers and seas 824 times a day, nearly 301,000 times a year over 1.75m hours. Despite higher demand, no new reservoirs have been built since privatisation. With captive customers and no competition, companies have hiked charges by 40% in real terms. The biggest winners are shareholders. More than 90% of the nine water companies are owned by overseas investors.
Since privatisation, companies have paid £72bn in dividends and another £15bn is expected by the 2030. These are largely funded by over £60bn of debt. To soothe public anxieties, Ministers claim that since 1989 water companies have invested £190bn. Such claims need to be treated with caution as the companies have a history of murky accounting practices.
Thames Water is England’s’ biggest water company. Since 2010, it has been sanctioned 92 times by the regulators and paid fines of £163m. Since privatisation, it has paid £7.2bn in dividends and has debts of around £14bn.
Taking cue from the water company, in June 2023 a Minister told parliament that “Thames Water itself has not paid any dividends for the last six year”. Of course, water companies are not operating as not-for-profit organisations and are masters of financial engineering and obfuscation.
Page 43 of the company’s 2022-23 financial report describes £45m payment (£37m for 2022) to its immediate parent company Thames Water Utilities Holdings Limited as “dividend” which then forwards it to Thames Water Utilities Limited and is still described as “dividend”. The same page then claims that it is not really a dividend because its purpose is to “solely to service debt obligations and group related costs of other companies within the wider Kemble Water Group”. Page 22 of the 2022 accounts of Thames Water Utilities Holdings Limited shows “Dividend Income” of £37.1m. Anything described as a “dividend” in the accounts is a dividend and in the last two years alone this amounts to £82m (£45m + £37m). Since privatisation, vast amounts are likely to have travelled via this route to the company’s ultimate controllers but are not included in the £7.2m of dividends.
Yorkshire Water is also engaged in sleight of hands. Since 2010, it has paid £1.2bn in dividends and claims to have stopped paying dividends from 2017-18. However, page 137 of its 2022-23 financial report states that the company paid £62.3m “dividends” to its parent company. Its 2021-22 accounts (page 99) state that “the Board of Yorkshire Water has approved the payment of £52.6m in dividends.”
… [article continues discussing Water companies’ financial obfuscation.]
April 2023 Surfers Against Sewage and Extinction Rebellion protests in St Agnes, Perranporth, Truro and Charlestown which unveiled spoof Blue Plaques to the MPs and Conservative Government who allowed raw sewage to be dumped in the sea (Image: Surfers Against Sewage)
On Wednesday 5 to Thursday 6 July, the High Court will hear a legal challenge that aims to force the Government to toughen up its plan for reducing sewage dumped in England’s rivers and seas. Good Law Project is supporting the Marine Conservation Society, Richard Haward’s Oysters and surfer and activist Hugo Tagholm as they argue that the Government’s strategy is inadequate, allowing water companies to pollute waters and beaches for another 27 years.
England’s sewers were designed with 14,500 storm overflows to stop them becoming overwhelmed, allowing a mixture of surface water and sewage to be discharged during heavy rainfall. But according to the Environment Agency, these overflows are now used on a routine basis. Water companies discharged untreated sewage through storm overflows more than 300,000 times in 2022 for a total of 1.7 million hours.
The Department for Environment, Food and Rural Affairs (DEFRA) published the Storm Overflows Discharge Reduction Plan to tackle this in August last year. It imposed a deadline of 2035 for reducing the sewage flowing into bathing waters and areas of ecological importance, but gave companies until 2050 to stop discharges elsewhere.
This legal challenge, which has been backed by cross-party MPs, aims to force the Government to bring forward these deadlines and introduce tougher targets.
Lindsey German on … [Keith Starmer] , the establishment’s friend …
The fate of Thames Water should be the end of the privatisation model pioneered by Thatcher in the 1980s. The major utilities and public companies were sold off at undervalued prices, their shares rapidly snapped up by big corporations and investors, prices for consumers rose rapidly, and profits went to shareholders, not to investment. That’s why today the common refrain about most parts of public life in Britain is that nothing works. And it is epitomised by Thames Water drowning in debt and likely to be taken back into public ownership temporarily.
But any form of nationalisation is going to be resisted to the bitter end, not just by the greedy privatised companies themselves, but by the Tories and the increasingly right-wing Labour Party under Keir Starmer. The cheek of the privatised companies was illustrated when the head of another, Severn Trent, convened a meeting of all the water firms to explicitly discuss ways of resisting nationalisation. And it’s no use going to the supposed regulators for help. As the Observer reported, ‘27 former Ofwat directors, managers and consultants [are] working in the industry they helped to regulate, with about half in senior posts.’ So a number of those regulating the industry have moved over to take lucrative positions in…. the privatised water companies.
While investors take the money and run, working class people are left with dire and expensive services that fail frequently because there is no investment. The water companies are publicly disgraced because of their dumping of sewage in rivers and seas, rather than invest in new treatment plants. But in London (and no doubt elsewhere) there have been several burst water mains, risking lives as they cause disruption sometimes for months, because of lack of investment. In the southeast of England, drinking water supplies have failed ‘because of the hot weather’, in what must be the lamest excuse from a company supposed to provide just that.
The answer from government and industry alike is that future investment will have to be paid for by us, through much higher bills and higher taxes. Already gas and electricity is beyond affordable for millions. But the energy companies will set the benchmark for other industries as profits are protected. No wonder nearly 13 million adults struggle to pay bills.
dizzy: Under Capitalism failing companies would normally go bankrupt so that the companies’ debts would be transferred to it’s creditors. This is not the case with the banks in the banking crisis of 2008, the energy companies failures ofrecent yearsand it looks like failing water companies now. Instead of the companies creditors shouldering the debt as part of the normal process, the poor public is instead burdened with it. This is great for the banks of course because it means that they can borrow without any risk of default, knowing that they will profiteer from the public regardless.
