Latest news with #Defra
The Independent
17 hours ago
- Business
- The Independent
Water industry review unlikely to spark required change, claims Feargal Sharkey
Water campaigner Feargal Sharkey says he believes a landmark review into the water industry will not produce changes the public and customers desperately need. The Independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, will outline recommendations to turn around the floundering sector in its final report on Monday, with claims it will lead to the abolition of embattled water regulator Ofwat. But former Undertones frontman Sharkey, who has become a leading campaigner for water companies to clean up their act, said he fears the highly anticipated report will be a 'flat pancake'. He told the PA news agency: 'We were promised that the report will bring us champagne – but it will just be a saucer of milk.' Sharkey, who has given evidence to MPs on the need for reform and has spoken at numerous public and trade union meetings, said he does not believe 'much will happen' as a result of the report's findings. 'Sir Jon's job is to make the current system better, but so many things have not been considered in his review, such as the ownership of the water companies. 'I also don't think you can talk about abolishing Ofwat without considering the future of the Environment Agency – and taking a long, hard look at the Environment Department (Defra), as well as the lack of action from government ministers for many years. They are just as culpable.' Sharkey said governments have had the power to punish water companies over sewage pollution, or the 'scandal' of paying huge bonuses to bosses, but had chosen not to use them for years. He believes the public and customers have been treated with 'contempt' by water companies for years despite outrage over sewage pollution of rivers and waterways. He added the fact that the review had been held was a victory for the many small community groups across the country set up to tackle the crisis. The review was commissioned by the UK and Welsh governments as part of their response to systemic industry failures, which include rising bills, record sewage spills and debt-ridden company finances, although ministers have ruled out nationalising companies. A Government spokesperson pointed out that unfair bonuses have been banned for senior executives at six water companies under new measures which came into force last month. The Government said at the time that transformative change across the water sector was needed to clean up rivers, lakes and seas, and modernise the sector for decades to come. Under the rules, companies are not permitted to pay bonuses to water bosses that oversee poor environmental and customer outcomes.
Yahoo
17 hours ago
- Business
- Yahoo
Water industry review unlikely to spark required change, claims Feargal Sharkey
Water campaigner Feargal Sharkey says he believes a landmark review into the water industry will not produce changes the public and customers desperately need. The Independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, will outline recommendations to turn around the floundering sector in its final report on Monday, with claims it will lead to the abolition of embattled water regulator Ofwat. But former Undertones frontman Sharkey, who has become a leading campaigner for water companies to clean up their act, said he fears the highly anticipated report will be a 'flat pancake'. He told the PA news agency: 'We were promised that the report will bring us champagne – but it will just be a saucer of milk.' Sharkey, who has given evidence to MPs on the need for reform and has spoken at numerous public and trade union meetings, said he does not believe 'much will happen' as a result of the report's findings. 'Sir Jon's job is to make the current system better, but so many things have not been considered in his review, such as the ownership of the water companies. 'I also don't think you can talk about abolishing Ofwat without considering the future of the Environment Agency – and taking a long, hard look at the Environment Department (Defra), as well as the lack of action from government ministers for many years. They are just as culpable.' Sharkey said governments have had the power to punish water companies over sewage pollution, or the 'scandal' of paying huge bonuses to bosses, but had chosen not to use them for years. He believes the public and customers have been treated with 'contempt' by water companies for years despite outrage over sewage pollution of rivers and waterways. He added the fact that the review had been held was a victory for the many small community groups across the country set up to tackle the crisis. The review was commissioned by the UK and Welsh governments as part of their response to systemic industry failures, which include rising bills, record sewage spills and debt-ridden company finances, although ministers have ruled out nationalising companies. A Government spokesperson pointed out that unfair bonuses have been banned for senior executives at six water companies under new measures which came into force last month. The Government said at the time that transformative change across the water sector was needed to clean up rivers, lakes and seas, and modernise the sector for decades to come. Under the rules, companies are not permitted to pay bonuses to water bosses that oversee poor environmental and customer outcomes.
The Independent
19 hours ago
- Business
- The Independent
Government launches water ombudsman to boost consumer protection
Customers will be given stronger protections against water firms under government plans to restore trust in the beleaguered industry. Steve Reed is setting up a new water ombudsman with legal powers to resolve disputes, rather than the current voluntary system that is thought to lack teeth. The environment secretary is embarking on 'the biggest overhaul of water regulation in a generation' amid growing anger at poor service, spiralling bills and the pollution of Britain's waterways. He pledged on Sunday to cut pollution in Britain's rivers in half by the end of the decade, eliminating it completely by 2035. And on Monday he will outline the latest changes, which will expand the role of the Consumer Council for Water (CCW), bringing the sector into line with other utilities by creating a legally binding consumer watchdog. The ombudsman will also provide a single point of contact for consumers with complaints, instead of leaving them uncertain about where to go. The Department for the Environment, Food and Rural Affairs said the new watchdog would help "re-establish partnership" between water companies and consumers. In May, a survey by the CCW found trust in water companies had reached a new low, with less than two-thirds of people saying they provided value for money. Only 53 per cent said they thought what water companies charged was fair, even before the impact of a 26 per cent increase in bills that came into effect in April. The new ombudsman is part of Mr Reed's wider plans for a "root and branch reform" of the water industry, set to be unveiled alongside a major review of the sector on Monday. Following publication of the review, he is expected to say: "The water industry is broken. Our rivers, lakes and seas are polluted with record levels of sewage. "Water pipes have been left to crumble into disrepair. Soaring water bills are straining family finances. "Today's final report from Sir Jon Cunliffe's Independent Water Commission offers solutions to fix our broken regulatory system so the failures of the past can never happen again." The key recommendation is expected to involve scrapping Ofwat and creating a new regulator, which could incorporate the work of the CCW. Mr Reed on Sunday promised to make the UK's rivers the cleanest since records began with a £104bn investment to rebuild the country's crumbling sewage pipes. Speaking to the BBC's Sunday with Laura Kuenssberg, Mr Reed said Labour would unleash a 'water revolution' in response to Sir Jon's review. He said leaky pipes and crumbling infrastructure has cost taxpayers tens of billions of pounds, promising the party would look to eliminate sewage pollution in rivers completely by 2035. And, amid speculation Ofwat is to be scrapped, he said the water regulator 'has failed everyone'. Mr Reed said: 'I'm making an absolute commitment, and I'm committed to delivering it. "My intention, assuming I'm lucky enough to still be in the same job in five years' time, I would love to sit here with you then and point to places like Windermere and see how much cleaner they are than today." Asked whether he would put his job on the line, he said: "Politicians come and say we're going to do things. Of course our job should be on the line if we don't."
Bloomberg
19 hours ago
- Business
- Bloomberg
UK Pledges Consumer Champion for Scandal-Ridden Water Sector
Britain will set up a new office to investigate consumer complaints against water companies as part of a 'root and branch' overhaul of a sector in crisis after years of under-investment and pollution scandals. The proposed water ombudsman would have binding legal powers to resolve disputes, unlike the current 'voluntary' system, and bring the sector into line with other utilities, the Department for Environment, Food and Rural Affairs said in a statement Sunday.
Sky News
19 hours ago
- Business
- Sky News
New water ombudsman to give public stronger protections, government pledges
Consumers will get stronger protections with a new water watchdog - as trust in water companies takes a record dive. Environment Secretary Steve Reed will announce on Monday that the government will set up the new water ombudsman with legal powers to resolve disputes, rather than the current voluntary system. The watchdog will mean an expansion of the Consumer Council for Water's (CCW) role and will bring the water sector into line with other utilities that have legally binding consumer watchdogs. Consumers will then have a single point of contact for complaints. The Department for the Environment, Food and Rural Affairs (Defra) said the new watchdog would help "re-establish partnership" between water companies and consumers. A survey by the CCW in May found trust in water companies had reached a new low, with fewer than two-thirds of people saying they provided value for money. Just 35% said they thought charges from water companies were fair - even before the impact could be felt from a 26% increase in bills in April. 1:20 Mr Reed is planning a "root and branch reform" of the water industry - which he branded "absolutely broken" - that he will reveal alongside a major review of the sector on Monday. The review is expected to recommend the scrapping of water regulator Ofwat and the creation of a new one, to incorporate the work of the CCW. Campaigners and MPs have accused Ofwat of failing to hold water operators to account, while the companies complain a focus on keeping bills down has prevented appropriate infrastructure investment. On Sunday, Mr Reed avoided answering whether he would get rid of Ofwat or not when asked on Sunday Morning with Trevor Phillips. He pledged to halve sewage pollution by water companies by 2030 and said Labour would eliminate unauthorised sewage spillages in a decade. Mr Reed announced £104 billion of private investment to help the government do that. Victoria Atkins MP, Shadow Secretary of State for Environment, Food and Rural Affairs, said: "While stronger consumer protections are welcome in principle, they are only one part of the serious long-term reforms the water sector needs. "We all want the water system to improve, and honesty about the scale of the challenge is essential. Steve Reed must explain that bill payers are paying for the £104 billion investment plan. Ministers must also explain how replacing one quango with another is going to clean up our rivers and lakes. "Public confidence in the water system will only be rebuilt through transparency, resilience, and delivery."
