Latest news with #waterCompanies
Telegraph
20-05-2025
- Business
- Telegraph
Water companies face wave of criminal investigations
Criminal investigations into water companies are at a record high amid a crackdown on illegal sewage dumping. A total of 81 investigations have been opened, after spot checks at company premises and rivers jumped 400 per cent in the past year. Breaches of environmental permits, such as releasing excessive pollution into rivers or failing to carry out water quality monitoring, are criminal offences. Thames Water faces the highest number of criminal investigations, 31, while Anglian Water has 22, according to government figures. Under new laws, water company executives could face as long as two years in prison for obstructing an investigation. If found guilty, they could be jailed for up to five years and their firms fined hundreds of millions of pounds. Sir Adrian Montague, the chairman of Thames Water, appeared in front of MPs earlier this month to defend handing out six-figure bonuses. He argued that the firm needed to 'reward its staff effectively' to ensure they would not be poached by rival businesses. But Downing Street today appeared to hit back at his remarks, as the Prime Minister's spokesman said: 'Water bosses rewarding themselves for failure is clearly not acceptable.' 'The new Ofwat powers that are set out in the Water Act and will be coming into effect shortly will be applied retrospectively, meaning that they apply to Thames Water, just as they will any other company.' Steve Reed, the Environment Secretary, said that water bosses who were breaking the law would 'finally be punished'. He added: 'Water companies have too often gone unpunished as they pump record levels of sewage into our waterways. No more. 'A record number of criminal investigations have been launched into law-breaking water companies – which could see bosses behind bars. 'With this Government, water companies who break the law will finally be punished for their disgraceful behaviour so we can clean up our rivers, lakes and seas for good.' Mr Reed also confirmed that Thames Water had 'withdrawn' plans to pay senior bosses large bonuses, something the water company had said was necessary to secure a £3 billion emergency loan. Thames Water's chairman earlier admitted incorrectly stating that the so-called retention plan was 'insisted upon' by the company's lenders. Philip Duffy, chief executive of the Environment Agency, said: 'Our message to the industry is clear: we expect full compliance throughout the water system, and we will not hesitate to take robust enforcement action where we identify serious breaches.' Government figures show the regulator carried out an average of nine investigations a month between July 2024 and March this year. That compared with 187 criminal investigations launched in the period from April 2020 to June 2024, an average of 3.6 per month. But critics said that the attempts at a crackdown had not gone far enough. 'National scandal' Tim Farron, the Liberal Democrats' environment spokesman, said: 'Eighty-one investigations does not even begin to address the sewage scandal that has plagued British rivers and seas for far too long. 'This is a national scandal which got far worse under the Conservatives' watch. Their record is one of rising sewage levels and water firms stuffing their pockets with cash. 'And now, the Government's attempt to tackle the crisis is a job half done. A toothless regulator will fail to end the scandal of multi-million pound bonuses for sewage dumpers.'
The Guardian
20-05-2025
- Business
- The Guardian
Thames Water and Anglian Water face 53 criminal investigations over sewage
Two of Britain's biggest water companies, Thames Water and Anglian Water, face more than 50 criminal investigations between them as part of a crackdown on sewage dumping, the government has said. The utilities were subject to the bulk of a record 81 investigations into water companies between last July's general election and March 2025, according to new data. New powers to claw back the costs of the Environment Agency investigations will be used, meaning the 'polluter will pay', sources told the Guardian. This could prove very costly for Thames, the heavily indebted supplier that topped the charts of active investigations at 31 and will probably have to fund the majority of them. Britain's biggest water company, which recently came within five weeks of running out of funds, attempted to persuade the water regulator to let it off hundreds of millions of pounds of fines. Significant further costs could risk tipping it into a special administration, a form of nationalisation. Thames Water is rushing to find a buyer willing to inject cash as it teeters on the brink of temporary nationalisation. The company, which has 16 million customers and 8,000 employees, is labouring under £20bn of debt. The US private equity firm KKR, which hopes to acquire a £4bn stake, is the last option for Thames Water as it scrambles to find a buyer by the end of June. Anglian Water has faced 22 investigations since last July. Sources in the environment department said that they had directed the Environment Agency to take robust action and hoped to see water executives in court in coming months. After these investigations, water bosses could be jailed for two years and water companies fined hundreds of millions of pounds. Steve Reed, the environment secretary, said: 'Not only did the Conservatives oversee record levels of sewage dumping, they also shamelessly tried to cover it up. 'And Reform didn't even mention sewage in their manifesto; Nigel Farage simply doesn't care about our beautiful rivers, lakes and seas. 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 'This Labour government is cleaning up the foul mess the Tories left behind with a record number of criminal investigations into lawbreaking water companies – which could see bosses behind bars.' It is a criminal offence for a water company to break the rules of its environmental permit. This can include releasing excessive pollution into a river or failing to carry out water quality monitoring. The Environment Agency has hired 380 extra regulatory staff to carry out inspections and other enforcement activity. James Wallace, the chief executive of River Action, said: 'Criminal investigations are welcome, but regulators need urgent access to courts and if the upcoming spending review slashes Environment Agency funding, how will it sustain the level of enforcement needed to hold polluters to account – from water companies to factory farms? Tough talk needs backing with real resources.' Thames Water, Anglian Water and Water UK, the industry body, have been contacted for comment.
