Latest news with #sewagepollution
Bloomberg
3 hours ago
- Business
- Bloomberg
Bonus Blockage
Morning, I'm Louise Moon The water regulator Ofwat has shown its (much questioned) muscle and banned six companies from paying bonuses as it cracks down on sewage pollution.
The Guardian
14 hours ago
- Business
- The Guardian
Bonuses banned for 10 English water bosses over sewage pollution
Bonuses for 10 water company executives in England, including the boss of Thames Water, will be banned with immediate effect over serious sewage pollution, as part of new powers brought in by the Labour government. The top executives of six water companies who have overseen the most serious pollution events will not receive performance rewards this year, the environment said. The companies – Thames Water, Anglian Water, Southern Water, United Utilities, Wessex Water and Yorkshire Water – are responsible for the most serious category of sewage pollution into rivers and seas, all of which are, or have been, under criminal investigation by the Environment Agency. Under powers in Labour's Water (Special Measures) Act 2025, the regulator, Ofwat, is now able to ban bonuses for water executives where a company fails to meet key standards on environmental and financial performance, or is convicted of a criminal offence. In the past 10 years, executives at the nine main water and sewerage companies have been paid £112m in bonuses while sewage pollution increased to a record last year of 2,487 events. Reed said: 'Water company bosses, like anyone else, should only get bonuses if they've performed well – certainly not if they've failed to tackle water pollution. Undeserved bonuses will now be banned as part of the government's plan to clean up our rivers, lakes and seas for good.' Bonuses have been banned for Thames Water's chief executive, Chris Weston, and Steve Buck, its chief financial officer. Southern Water, United Utilities and Yorkshire Water have also had bonuses banned for their chief executives and chief financial officers. Thames, which is struggling to avoid collapsing into temporary state ownership as it labours under debts of £20bn, was targeted both for its financial failures and for seven major pollution events, which took place in Slough, in Berkshire; Three Rivers District; the Chilterns; Sevenoaks; Reigate; Runnymede and Enfield last year. Andy Pymer, the chief finance officer of Wessex Water, had his bonus banned over the company's criminal conviction last November for sewage leaks that killed thousands of fish, which the company failed to report. Mark Thurston, the boss of Anglian Water, is having his bonus banned for a serious pollution event in Peterborough last September. The other executives who will not be allowed to take bonuses are: Lawrence Gosden and Stuart Ledger, CEO and CFO respectively of Southern Water; Louise Beardmore and Phil Aspin, CEO and CFO respectively of United Utilities; and Nicola Shaw and Paul Inman, CEO and CFO respectively of Yorkshire Water. Last month the Guardian revealed Reed planned to block Thames Water from paying separate retention bonuses to senior executives from a £3bn emergency loan that was meant to stabilise the company's finances and save it from collapse. Thames's chair, Adrian Montague, defended the planned rewards of 50% of salary, arguing senior managers were the company's 'most precious resource'. Thames later announced it was pausing the retention bonus payments and Montague was forced to apologise to MPs last month, saying he may have 'misspoken' when he claimed lenders had insisted on the bonuses. On Tuesday, the US private equity firm KKR pulled out of a £4bn rescue deal for Thames Water, putting the company's future in doubt and increasing the prospect of a temporary nationalisation. KKR is understood to have decided the political risks of owning Thames were too great, and it was also concerned about the poor state of the company's assets. The bonus ban comes into place immediately as part of what Reed promised to be tougher enforcement against failing water companies. Last year alone water executives were paid bonuses of £7.6m while overseeing record levels of pollution. Reed has been accused of putting off investors into England's troubled water industry by his tough stance. The Conservative MP Victoria Atkins accused him in the Commons of undermining the rescue deal with negative rhetoric. But Reed said: 'I will make no apology for tackling the poor behaviour of water companies and water company executives that took place under the previous government and that we are correcting.' Becky Malby, of the campaign group Ilkley Clean River, welcomed the bonus bans but said they were further evidence that the privatised industry could not be trusted. 'We are seeing fines, bonus bans and criminal investigations into water companies. This shows us just how broken the system is,' she said. 'The public has consistently wanted water companies to be publicly owned. What is it about this plethora of evidence that makes the government confident that the current privatised system can deliver?' James Wallace, chief executive of River Action, said: 'Banning bonuses is a welcome step from the government. But we won't end pollution for profit until water companies are refinanced and governed for public benefit. Any attempt to inflate base pay as a workaround must be stamped out. The era of rewarding criminal leadership must end. No more cream for the fat cats.' Caroline Voaden, MP for South Devon, said it was baffling why South West Water bosses had not had their bonuses banned. 'It's hard to think of a company more deserving to have its boss's bonuses banned than South West Water,' she said. 'Not only did the company preside over the cryptosporidium outbreak in the relevant financial year, but in June, just weeks after the outbreak, South West Water's CEO saw her salary increased by £300,000, proving their absolute contempt for affected customers.' A spokesperson for Water UK, which represents the industry, said: 'Performance-related pay is independently determined by remuneration committees, which will abide by the laws and regulations set by government. Water companies are focused on investing a record £104bn over the next five years to secure our water supplies, end sewage entering our rivers and seas and support economic growth.'
The Guardian
3 days ago
- Business
- The Guardian
UK water industry needs ‘fundamental reset', review finds
The 'deep-rooted, systemic' problems in the UK water industry are the fault of companies, the government and industry regulators, according to a much-anticipated review, which was immediately criticised for failing to recommend bold action by sewage pollution campaigners. An interim review into the water industry written by Sir Jon Cunliffe, a former deputy governor of the Bank of England, and commission by the government found there was 'no simple, single change, no matter how radical, that will deliver the fundamental reset that is needed for the water sector'. Cunliffe, the chair of the Independent Water Commission, said public trust in the water industry had been shaken by 'pollution, financial difficulties, mismanagement [and] infrastructure failures'. Campaigners expressed disappointment that the report failed to recommend clear actions to end the crisis, which was underlined on Tuesday when Thames Water, Britain's biggest water company, said the US private equity group KKR had pulled out of a deal to inject fresh equity, leaving its future in doubt. James Wallace, the chief executive of River Action, said: 'This interim report signals some progress on regulation, but it reads more like a sales pitch to international investors and overpaid CEOs than the urgent restructuring of corrupted water companies. 'We ask the commission to learn from other countries how to ensure water companies are owned, financed and operated for public benefit.' Cunliffe was prevented by the government from considering public ownership of water in his remit. He said there was a need to change the industry and its regulatory framework in order to attract investors prepared to take on a low risk, low return stake, that was stable over time. He said: 'We have heard of deep-rooted, systemic and interlocking failures over the years – failure in government's strategy and planning for the future, failure in regulation to protect both the billpayer and the environment and failure by some water companies and their owners to act in the public, as well as their private, interest. 'My view is that all of these issues need to be tackled to rebuild public trust and make the system fit for the future.' The economic regulator Ofwat, and the environmental regulator, the Environment Agency, had lost public trust, and their work overlapped, created tensions and left gaps in regulation, he said. Cunliffe is considering a recommendation that the regulators should be streamlined, which could result in merging them. He is also considering a requirement for economic regulation to become more supervisory, in order to intervene before problems happened. But Tim Farron MP, the Liberal Democrat environment spokesperson, said the commission needed to go further and recommend that Ofwat be scrapped. 'At the heart of the sewage scandal is a regulatory system which has failed,' he said. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'It's going to take more than a hose down to clean up the water industry. It's time for Ofwat to go and the commission must now make this plain.' Cunliffe's review was set up by the government amid growing public concern about record sewage spills and rising bills. He said he was considering a requirement for the economic regulator to be given powers to ensure owners of water companies did not act against the public interest. This would include tools to take over the direction of companies and intervene in changes of ownership when needed. But Giles Bristow, the chief executive of Surfers Against Sewage, said the report was a tinkering around the edges, which the public would not stand for. 'The criminal behaviour, chronic lack of investment and woeful mismanagement which has led to sewage filled seas is a direct result of our profit driven system. This interim report begins to recognise this, but as yet does not spell out the need to end pollution for profit,' he said. 'The commission's final recommendations must reshape the water industry to put public health and the environment first.' Richard Benwell, the chief executive of Wildlife and Countryside Link, said the government needed to start work now on vital reforms to cut pollution. 'The findings of failings suggest a clear direction of travel. Politicians must stop equivocating and set clear strategic direction for environmental recovery. Strong, enforceable targets are needed for water quality that can be applied across sectors,' he added.
New York Times
26-05-2025
- Health
- New York Times
In California, There's One Import That Nobody Wants
White sand stretches for miles where Pacific Ocean waves crash into the shore. Nearby, bicycles lean against seaside cottages that are accented by banana and palm trees out front. A rickety wooden pier offers spectacular views of sherbet-hued sunsets over the water. To the eye, Imperial Beach, Calif., is an idyllic beach town, a playground for tourists and Southern California residents alike at the southern border with Mexico. But lately, the view has been ruined by the sea breeze, which reeks of rotten eggs. The surfers who once prepared for big-wave competitions are gone. So are the tourists who built intricate sand castles and licked ice cream cones on the pier. Imperial Beach is now the center of one of the nation's worst environmental disasters: Every day, 50 million gallons of untreated sewage, industrial chemicals and trash flow from Tijuana, Mexico, into southern San Diego County. The cross-national problem traces back at least a century. But it has significantly worsened in recent years as the population of Tijuana has exploded and sewage treatment plants in both countries have fallen into disrepair. 'It's a public health ticking time bomb that isn't being taken seriously,' said Paloma Aguirre, the mayor of Imperial Beach. 'We need help.' Imperial Beach's shoreline, which has drawn tourists for more than a century, has been closed for more than 1,200 days in a row because of health concerns. A growing body of research suggests that even breathing the air may be harmful, as toxic particles in the water can become airborne. There are no overnight solutions, and officials on both sides of the border say that it will take yearslong expansions of sewage treatment plants to stop the pollution. In the meantime, Ms. Aguirre permanently sealed shut the windows of her home to keep out the noxious stench. More than 1,100 Navy recruits have contracted gastrointestinal illnesses after training in southern San Diego waters, the Office of the Naval Inspector General determined. And nearly half of the region's 40,900 households have experienced health problems, including migraine headaches, rashes and shortness of breath, that were most likely attributable to the sewage, according to the U.S. Centers for Disease Control and Prevention. Things have grown so desperate that when Lee Zeldin, President Trump's new environmental secretary and a former Republican congressman, arrived last month, even local Democrats cheered. On Earth Day, Mr. Zeldin came to Imperial Beach and vowed to urgently fix the sewage problem, which he said was 'top of mind' for Mr. Trump. 'We are all out of patience,' Mr. Zeldin said. The crisis has upended life in southern San Diego County — what locals call South County — which has an unusual mix of touristy beach towns and industrial warehouses. The region is defined by its border with Mexico, where Spanish and English flow interchangeably and the densely populated hillsides of Tijuana loom in the distance. But South County residents have felt powerless when it comes to the complex international dynamics that have allowed so much sewage to overwhelm their neighborhoods. 'We want to be able to survive,' said Jesse Ramirez, 60, who has owned a skate and surf shop on Imperial Beach's main drag for three decades. On a recent morning during what would typically be the start of tourist season, his store was entirely empty. Imperial Beach, known to locals as I.B., was never as glamorous as the wealthy beach spots farther north. It takes its name from Imperial County, an inland region from which farmers once arrived each summer to escape the sweltering heat. The city has long been a working-class community, and its nearly four miles of coastline have functioned as a town square at the southwestern corner of the continental United States. Not long ago, surfers rode the world-renowned swells at Tijuana Sloughs, the city's southernmost beach. Locals walked their dogs on the warm sand and enjoyed the sea breeze and pints of beer on outdoor patios. But so-called extreme odor events happen more nights than not. Tests have found a disturbing slew of contaminants in the water, including arsenic, heavy metals, hepatitis, E. coli, salmonella, banned pesticides such as DDT, and more. 'We have watched in horror as the amounts of sewage have catastrophically increased,' said Serge Dedina, a surfer and environmentalist who served as mayor of Imperial Beach from 2014 to 2022. 'It's become kind of like a collective mental health crisis.' In the 1990s, in an act of binational cooperation, the United States built a plant on its side of the border to help treat sewage from Tijuana, which often flowed into San Diego beaches via northward currents from Mexico. At the same time, Mexico established a plant in Tijuana as well. But those plants haven't kept up with explosive population growth in Tijuana, one of Mexico's fastest-growing cities. Roughly 2.3 million people now live in the city, spurred in part by American companies that built factories there for cheap labor. Aging infrastructure and damage from turbulent rains have further reduced how much sewage the plants can treat. The sewage problem now stretches up to Coronado, a wealthy enclave known for the historic Hotel del Coronado, where rooms regularly go for $1,000 a night and a $550 million renovation just finished after six years. Beaches have been forced to close there as well, so fewer tourists are booking lodging, said John Duncan, the city's mayor. 'My biggest concern as mayor is that the reputation as 'the toilet of Mexico' starts to stick at some point and really hurts us,' Mr. Duncan said. In addition to the sewage that goes directly into the ocean, another 10 million gallons each day flow into the 120-mile Tijuana River, which begins in Mexico and winds northward into the United States before emptying at Imperial Beach, according to the U.S. International Boundary and Water Commission, which manages the U.S. treatment plant and is overseen by the State Department. The river waste comes from factories, as well as from shantytowns in Tijuana that aren't hooked up to the city's sewer system. The river provides habitat for 370 species of birds along the Pacific Flyway, an important migratory pathway. But in recent years, it has essentially become an open sewer running through southern San Diego neighborhoods and near schools, researchers say. On a recent day, the water in the Tijuana River appeared fluorescent green and was spotted with foam, what scientists say is the product of industrial chemicals. Beneath lanky willows, discarded tires clogged the waterway. Crushed milk jugs and scraps of clothing piled up on the river's muddy banks. The sulfur stench was pungent, even through a respirator mask. Along the river, scientists have detected astronomically high levels of hydrogen sulfide in the air, which can cause headaches, fatigue, skin infections, anxiety and respiratory and gastrointestinal problems. Residents have complained about such symptoms for years, said Paula Stigler Granados, a public health researcher at San Diego State University. 'I consider this to be the largest environmental justice issue in the whole country,' Ms. Granados said. 'I don't know any other place where millions of gallons of raw sewage would be allowed to flow through a community.' The U.S. boundary commission has secured $600 million to double its treatment capacity to 50 million gallons per day, according to Frank Fisher, a spokesman. The Mexican plant is also working on repairs and expanding capacity, he said. Many worry that the changes will take too long: The expansion at the American plant alone will take five years. Some short-term ideas that have been floated include trying to treat the river water before it reaches neighborhoods and giving air purifiers to residents. Mr. Zeldin said when he visited San Diego in April that he was compiling a list of projects that would solve the crisis sooner. He suggested building a funnel at the Mexican treatment plant that would send sewage farther from the shore. Mr. Dedina, the former Imperial Beach mayor, moved there when he was 7 and grew up surfing and lifeguarding. But he surfed those waters for the last time in 2019, he said, heading back to shore despite perfect, 10-foot waves. The water that day was simply too foul. 'I just said: 'I can't do this anymore. I can't go in the water,'' he recalled. 'It's like Russian roulette.' In 2022, Mr. Dedina moved Wildcoast, the environmental nonprofit he runs, out of Imperial Beach because his employees began complaining of toxic fumes. Then, last year, he and his wife moved to central San Diego, away from the stench. The health risks in his hometown had become too much. 'I miss the life that I had,' he said. 'Grabbing my surfboard, going in the water. It's gone and it's tragic.'
The Independent
21-05-2025
- Business
- The Independent
Severn Trent enjoys bumper profits as water bills soar
Severn Trent's profits and revenues surged last year before the water giant hit consumers with a more than one-fifth annual increase in bills in April. The company, which supplies water and sewage services to more than 4.7 million households and businesses across the Midlands and Wales, hiked bills by an average of 21% this year. That equates to a roughly £99 annual increase, with the average household now set to pay £556 over the course of the year. Severn Trent said the sharp increase in bills will help fund about £15 billion in investment to upgrade its network of pipes, sewers and reservoirs over the next five years. Meanwhile, the company enjoyed a bumper year financially, it revealed on Wednesday, with profits surging 59% to £320 million for the year ending March 31. Water firms have been the subject of growing public outrage over rising bills at the same time as high levels of sewage pollution and executive bonuses in recent years. Severn is among the better performing of the privatised water companies on environmental metrics in recent years, and beat recent targets set by Ofwat, the watchdog said in October. The company said on Wednesday that its annual performance on 'serious pollutions' also met the top industry standard set by the Environment Agency. 'That said, we have missed our overall regulatory pollutions target, and we understand that our assets need to be future-proofed to deal with more frequent extreme weather events,' it added. On sewage spills, it said that in the first four months of 2025 it had seen year-on-year spill reductions of 66%. Chief executive Liv Garfield said the company's environmental performance 'has been made possible by our financial strength'. 'The £1 billion equity raise we secured ahead of this five-year business cycle, combined with strong financing and cost control, has given us the firepower to invest in our growth plan and will see us create 7,000 new jobs in our communities and through our supply chain.' Annual revenue rose 3.8% to £2.4 billion, the company said.
