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The Guardian
17 hours ago
- Business
- The Guardian
Charity in legal action against minister for failing to act over Thames Water
A river charity is taking legal action against the environment secretary, Steve Reed, accusing him of an unlawful failure to publish his policy on taking failing water companies into temporary nationalisation. Lawyers for River Action argue that Thames Water has breached its duties and violated its licence conditions seriously and repeatedly, making it the clearest possible case for special administration. Special administration is a temporary insolvency and restructuring process for companies that provide essential public services such as water, energy and transport. It is designed to ensure continuity of service while the company is stabilised and restructured. There is a bespoke special administration regime (SAR) for the water industry, which was created in 1991 and is designed to prioritise customers and services while putting financial interests second. Reed has said that the government is stepping up preparations to take Thames Water into special administration, indicating he will reject pleas from the company's creditors for leniency from fines and penalties. Thames Water's largest creditors control the utility and have made efforts to cut some of its debts and have offered to provide £5.3bn in new funding to try to turn it around. But River Action's head of legal, Emma Dearnaley, said the time to use the SAR process was now. 'Enough is enough,' she said. 'Why hasn't the secretary of state used special administration to fix the water sector, starting with Thames Water? 'The government has the power but won't use it, or even explain when it might trigger this process. Apparently, the government has no policy at all. That's a fundamental failure of transparency and accountability, and it's unlawful.' River Action has lodged an application for a judicial review against the secretary of state. The claim argues that the government has failed to publish its policy on when it would use the SAR process, breaching core public law duties, and that ministers have failed to develop a policy at all, breaching obligations under habitats regulations and other planning and environmental laws. Under section 24 of the Water Industry Act 1991, special administration can be triggered by a water company's failure to meet performance standards, including environmental pollution, and a breach of its statutory or licence duties in ways that are 'serious enough to make it inappropriate for the company to continue to hold its licence'. Sign up to Down to Earth The planet's most important stories. Get all the week's environment news - the good, the bad and the essential after newsletter promotion River Action argues that Thames Water clearly meets that threshold and has done so for years. Serious pollution incidents by Thames and other water companies were up 60% last year compared with the year before, data has revealed. There were 75 serious pollution incidents in 2024, up from 47 in 2023, Environment Agency figures show. Three companies were responsible for 61, or 81%, of the incidents: : Thames Water with 33, Southern Water, 15, and Yorkshire Water, 13. Thames Water's serious incidents more than doubled. A spokesperson for the government said: 'We are unable to comment on an ongoing legal challenge.' Thames Water was approached for comment.
The Independent
22-07-2025
- General
- The Independent
No households fined for breaking hosepipe bans during recent droughts, water firms admit
Major water companies in England have not issued a single fine to residents for breaking hosepipe bans over the last five years, The Independent can reveal. Southern Water, Yorkshire Water, Thames Water and South West Water have confirmed they did not issue any fines, which can be as high as £1,000, despite having the legal power to do so for more than a decade. All four companies have introduced hosepipe bans at different times since 2020, including the heatwaves of 2022 and 2023, which left millions under restrictions. This year, Yorkshire Water, South East Water, and Southern Water have all imposed bans to curb non-essential use as England battles exceptionally dry weather. Under current rules, householders who breach a ban can be fined up to £1,000 if prosecuted, and companies also have powers to issue £100 fixed penalty notices. Despite high-profile campaigns urging households to save water, enforcement has relied entirely on public goodwill rather than financial penalties. Campaigners have told The Independent that leaking pipes, poor planning and inaction by water companies pose a far greater threat to supplies than people watering their gardens. James Wallace, CEO of campaign group River Action, said it was wrong to focus on 'threatening customers with £1,000 fines for watering their gardens' when water companies themselves spill billions of litres every day and face few consequences. 'Voluntary measures and public awareness aren't enough,' he warned, calling for 'real enforcement, aimed at water companies, and bold structural reform' to tackle worsening drought risks. 'No new reservoirs have been built in over 30 years, despite clear climate warnings about worsening droughts,' Mr Wallace added. Paul de Zylva, sustainability analyst at Friends of the Earth, said that hosepipe bans are a 'sticking plaster solution to a problem that is only going to get worse'. 'Recent heatwaves only add to drought conditions, making it harder for everyone – not least hospitals, care homes, farmers and transport operators – to cope,' he added. It comes as the government announced plans to scrap the regulator Ofwat in an overhaul of regulation for the troubled water sector. The final report from the Independent Water Commission, led by Sir Jon Cunliffe, made 88 recommendations to the UK and Welsh governments aimed at turning around the industry, which has faced public fury over pollution, soaring bills, shareholder payouts and executive bonuses. The number of serious pollution incidents caused by water firms across England also rose by 60 per cent in 2024 compared with the previous year, the Environment Agency said. Three water firms were responsible for 81 per cent of these serious incidents – Thames Water with 33, Southern Water with 15, and Yorkshire Water with 13. It attributed the rise in incidents last year to persistent underinvestment in new infrastructure, poor asset maintenance, and reduced resilience because of the impacts of climate change. Southern Water said that during its 2022 hosepipe ban, most customers complied voluntarily. The company said it focused on explaining the reasons for the ban and encouraging people to comply, viewing enforcement as the 'very last step'. Yorkshire Water also confirmed no fines had been issued. A spokesperson said: 'Whilst we do have the power to enforce the restrictions and have a process to deal with those breaching it, we would prefer not to have to use this and would hope customers would work with us and respect the restrictions, recognising it's been put in place to protect essential supplies. The response so far has been brilliant, and we've seen demand coming down.' South West Water and Thames Water both confirmed they did not fine customers for breaching restrictions. Nicci Russell, chief executive of water efficiency charity Waterwise, said: 'At Waterwise we are clear that the UK is running out of water, and that this will affect every aspect of our lives.' She added that even if water companies fixed all their leaks, 'there would still be a big gap between the water we have and the water we need.' Ms Russell said hosepipe bans remain a legitimate tool to manage demand but argued the most effective solution is for everyone to 'waste less water, now,' alongside considering whether ministers should introduce stronger legal powers over time. Department for Environment, Food and Rural Affairs (Defra) officials said hosepipe bans typically reduce water use by around three to five per cent, helping supplies last longer and protecting the environment. Defra encourages households to take steps to save water, such as fixing leaky toilets, installing water butts and reusing leftover water for plants.
The Independent
21-07-2025
- Business
- The Independent
Campaigners and industry respond to ‘once-in-a-generation' water reform report
Environmental campaigners and consumer groups have offered sharply contrasting responses to a landmark report calling for an overhaul of the water industry in England. Mike Keil, chief executive of the Consumer Council for Water (CCW), said public trust in water companies had been 'drained' by poor environmental performance and wider service failures. The much-anticipated final report from the Independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, outlined 88 recommendations to the UK and Welsh governments to turn around the ailing industry. Mr Keil said: 'The commission has set out significant changes to the regulatory system. 'But water companies have always had the freedom to do what's right by their customers – and many have made bad choices.' Mr Keil said affordability must be a key focus of reform, with households already struggling following this year's sharp rise in water bills. 'More people are turning to CCW to complain about not being able to afford their bill,' he said. 'Over two in five households have told us they've cut spending on essentials like food to make ends meet. 'The case for a single social tariff for water has never been more urgent.' He welcomed recommendations to make the existing voluntary ombudsman scheme mandatory, saying: 'We're delighted the commission has recommended building on our work at a time when we're seeing more people turn to us for help.' But River Action chief executive James Wallace accused the commission of falling short, saying it had 'blinked' when faced with a chance to break with the past. 'This was a once-in-a-generation opportunity to reset a broken and corrupted system,' he said. 'Instead, we've been handed vague policy nudges that leave the current failed privatised water company model intact.' Mr Wallace said nothing less than 'a credible plan to rescue Britain's rivers, lakes and seas' was needed, including a clear path to bring 'failing companies like Thames Water into public control'. He called on the Government to put Thames Water into special administration as a 'powerful statement of intent', warning: 'Our water is our life-blood and not for sale.' Water UK, the trade body for the water companies, welcomed the commission's findings, calling reform 'long overdue'. A spokesperson said: 'Everyone agrees the system has not been working. 'These recommendations should establish the foundations to secure our water supplies, support economic growth and end sewage entering our rivers and seas.' Richard Benwell, a member of the Independent Water Commission's expert advisory group and chief executive of Wildlife and Countryside Link, said a 'culture of rule-breaking and non-compliance' was harming rivers and wetlands, and called for a more powerful and independent environmental regulator. He welcomed the proposal for new regional water authorities but warned reforms would fall short without proper funding and a clear steer from Government. 'Reforming regulators without fixing resourcing and remit would be painting over cracks,' he said. Ali Morse, water policy manager at The Wildlife Trusts, said the report offered 'strong recommendations' for more integrated, regionally driven planning, but warned time was running out to act. 'The commission has set the framework – now the Government must act with purpose,' she said. Gary Carter, national officer at the GMB union, said the report confirmed what the union had argued for years – that water privatisation had been a 'disastrous failure'. He accused company bosses of profiting while the water infrastructure 'crumbles through lack of investment' and sewage pollutes rivers. 'It's a disgrace – and one Ofwat has overseen,' he said. 'Now is the time to fundamentally reform the water sector and renationalise this vital resource.'
Yahoo
18-07-2025
- General
- Yahoo
'Brutal truth' of serious pollution incidents by water companies revealed
Campaigners have said a new report has exposed the "brutal truth" about water companies after it found the number of serious pollution incidents caused by firms rose 60% last year compared with 2023. This included 75 incidents classified as being able to harm human health. The Environment Agency report revealed consistently poor performance from all nine water and sewerage firms in the country. James Wallace, chief executive of River Action, said the figures 'expose a brutal truth' as "serious pollution incidents are rising, sewage discharges remain rampant and our rivers are spiralling toward ecological collapse. 'This is not just regulatory failure, it is a national disgrace.' What did the report say? Every year the Environment Agency records the number of times pollution, including untreated sewage, is released into waterways from water company infrastructure such as pumping stations, pipes and treatment works. The new figures, released on Friday, show companies recorded a total of 2,801 incidents last year, up from 2,174 in 2023. The regulator splits these incidents into categories, with category 1 (major) and category 2 (significant) considered the most serious in terms of their impact on the environment, such as damage to ecosystems, the loss of wildlife and harm to human health. Last year, 75 category 1 and 2 incidents were recorded, up from 47 the previous year. Three water firms were responsible for 81% of these serious incidents: Thames Water with 33, Southern Water with 15, and Yorkshire Water with 13. Meanwhile, just two companies – Northumbrian Water and Wessex Water – had no serious incidents last year, meeting the Environment Agency's expectations to see a trend to zero serious pollution incidents by 2025. The Environment Agency attributed the rise in incidents last year to persistent underinvestment in new infrastructure, poor asset maintenance and reduced resilience because of the impacts of climate change. Chair Alan Lovell said the figures demonstrate "continued systemic failure by some companies to meet their environmental targets. The water industry must act urgently to prevent pollution from occurring, and to respond rapidly when it does." Lovell added the agency has increased the size of its workforce to "tighten our regulation" of the industry. Water UK, the trade association for the water industry, said "the performance of some companies is not good enough" but pointed to £104bn of investment over the next five years to "end sewage entering our rivers and seas". What next? The data comes before the publication of a landmark review of the water industry on Monday. Led by Sir John Cunliffe, he will outline recommendations to the government on tackling the sector's environmental and financial performance. It also follows a report released by the House of Commons Public Accounts Committee on Friday, in which a cross-bench group of MPs called the level of pollution 'woeful' and recommended an overhaul of the regulation system. Read more System of regulating water firms needs complete overhaul, MPs warn (PA Media) Thames Water boss receives £1m despite doubling in 'serious' pollution (The Standard) How one water company has gone 30 years without a hosepipe ban (Yahoo News UK)
The Guardian
18-07-2025
- Politics
- The Guardian
Serious pollution incidents by England's water companies up 60% last year, data reveals
Serious pollution incidents from water companies were up 60% last year compared with the year before, data has revealed. These incidents are the most environmentally damaging kind and indicate that the sewage spill or other pollution incident has serious, extensive or persistent impact on the environment, people or property. They could, for example, result in mass fish deaths in rivers. The total number of serious pollution incidents in 2024 was 75, up from 47 in 2023. 81% of these – 61 of 75 – were from three water companies: Thames (33), Southern (15) and Yorkshire (13). Thames Water was the worst offender and doubled its serious incidents from 14 to 33. River Action's chief executive, James Wallace, said Thames Water should be put into special administration. He said: 'Thames Water, the most egregious polluter, should be put into special administration to start the reset. We need the prime minister and chancellor to empower and fund the environment secretary to end pollution for profit and enforce the law, backed by a credible plan to rebuild public trust. 'These figures expose a brutal truth: serious pollution incidents are rising, sewage discharges remain rampant, and our rivers are spiralling toward ecological collapse. This is not just regulatory failure; it is a national disgrace.' The sector total for all pollution incidents in 2024 was 2,801, an increase of 29% from 2,174 in 2023. Thames was again the worst polluter, responsible for 523 incidents, followed by Anglian Water (482), United Utilities (376), Southern Water (332), Severn Trent Water (300) and Wessex Water (248). Chris Weston, the company's chief executive, confirmed this week that Thames had asked to be let off fines. He told parliament's environment, food and rural affairs committee on Monday that ministers and the regulators needed to have a 'recognition of the reality of the situation', namely that they can't pay fines for polluting waterways with sewage and also financially turn around the company. The report, which focuses specifically on serious incidents, is the latest blow after years of growing public anger over sewage leaks and the failure of England's water companies to properly invest in their infrastructure. Alan Lovell, the chair of the Environment Agency, said: 'This report demonstrates continued systemic failure by some companies to meet their environmental targets. 'The water industry must act urgently to prevent pollution from occurring and to respond rapidly when it does. 'We have made significant changes to tighten our regulation of the water industry and ensure companies are held to account. With a dedicated larger workforce and increased funding, our officers are uncovering and acting on failures to comply with environmental law.' The public accounts committee today released a report which revealed there are too many environmental offences to prosecute every wastewater company for their poor environmental performance. It found that companies are expected to spend about £12bn in the next five years to update the system, but this will fix only about 44% of overflows. The Department for Environment, Food and Rural Affairs created an £11m fund for environmental improvements from water company fines in 2024, but has still not distributed the money. The report recommends that the government disburse the amounts promised by the end of the year and that regulators work urgently to ensure money raised from fines is reinvested into improving the system. Thames Water said: 'Last year was a very challenging year for pollution performance. Issues with our sewer networks caused a high volume of serious incidents, with blockages being the primary cause. Performance was adversely impacted by above average rainfall and high groundwater levels. Ten of the 33 incidents were on sites experiencing hydraulic overload while operating within permitted flow levels. 'It is important to remember that pollution reporting is largely a self-reported activity by water companies. While we recognise our serious pollution performance has not met our goals, it does demonstrate our commitment to the highest standards of transparency.' Southern Water and Yorkshire Water have been contacted for comment.
