Latest news with #waterbills
Daily Mail
20 hours ago
- Business
- Daily Mail
Labour's drive to build AI data farms 'will send water bills rocketing' by 30 per cent over next five years, report warns
Prime Minister Keir Starmer 's drive to build huge artificial intelligence data centres will help push up water bills by 30 per cent over the next five years, an independent report warns. The banks of computer equipment needed to advance AI models require huge volumes of water to fuel cooling systems. Ministers will also scrap the regulator Ofwat to make way for a new body to try to tame 'Wild West' water firms after the recommendations. But consumers will also pay the price of tackling future sewage spills and renewing crumbling infrastructure. The report's author – Sir Jon Cunliffe, a former deputy governor of the Bank of England – made 88 recommendations to turn around the ailing industry. His Independent Water Commission review tackles the issues of pollution, soaring bills and staggering pay awards and bonuses for failing company bosses. In the report, he warns that bills will have to rise because of a failure to invest in the sector amid a growing population and climate change. He also says that Labour policies including building 1.5 million more homes and more data centres to power AI will put 'pressure' on the system. The report's author – Sir Jon Cunliffe, (pictured) a former deputy governor of the Bank of England – made 88 recommendations to turn around the ailing industry Sir Jon also recommended the introduction of social tariffs to provide support for customers who are unable to pay their bills. He told BBC Radio 4's Today programme yesterday: 'The inescapable fact is that it costs more to produce drinking water and it will cost more to deal with our waste water as we go forward. 'When you look at the pressures on the water system – look at population growth [and] we want to have data centres in this country – they put huge demands on water. 'We have to accept them. But we have to plan for them, we have to decide where the priorities are, and we have to decide how to manage the trade-offs. At the moment, that is just not happening.' The report also said that data centres used by AI companies have a 'high water need'. It cited research from Oxford University that argued 'regional water stress must be considered for each data centre'. In January, Sir Keir launched an 'AI Opportunities Action Plan', which welcomed billions in investment from overseas tech companies to build data centres in the UK. Environment Secretary Steve Reed said yesterday that the Government would scrap the watchdog Ofwat, adding that the water industry is 'broken' and has been allowed to fail under a 'regulatory system that let them get away with it'. 'Our rivers, lakes and seas are polluted with record levels of sewage,' he said. He promised to create a 'single, powerful' regulator, bringing the four bodies responsible for water under its control. He also pledged to cut sewage pollution levels in 2024 by half by 2030 through a series of measures including public and private investment.
BBC News
a day ago
- Politics
- BBC News
Devon and Cornwall campaigners' mixed response to water overhaul
Environmental campaigners and industry stakeholders have given mixed responses to the government's announcement that water regulator Ofwat will be scrapped and Secretary Steve Reed said the overhaul, which follows an independent review, would "prevent the abuses of the past" and bring together fragmented oversight into a more accountable Pearson from water cleanliness advocates Friends of the Dart cautiously welcomed the move, calling the proposed ombudsman "a powerful tool for change."Campaign group, Cornwall-based Surfers Against Sewage (SAS), condemned the report as insufficient and cosmetic, claiming it was "putting lipstick on a pig". New water ombudsman will tackle leaks and overchargingFive key takeaways from the landmark water sector reviewWill the water industry proposals make any difference?Water bills will 'never again' jump as high, claims minister The Water Commission review, led by former Bank of England deputy governor Sir Jon Cunliffe, was set up in response to growing public concern about sewage spills and rising Pearson said: "We often hear people complaining that South West Water are effectively marking their own homework at the moment."She believes sustained investment and government-backed enforcement and needed for significant improvements to river health."What we need to see is not just identifying the problems, but consistent action towards resolving them," she said. "We need the right thing to be done, and we need it to be done methodically and with a long-term view." 'Taken for fools' Giles Bristow, chief executive of SAS, said the review "utterly fails to prioritise public benefit over private profit". "Only one path forward remains: a full, systemic transformation that ends the ruthless pursuit of profit and puts the public good at the heart of our water services," he the group welcomed the call for a national strategy, Mr Bristow dismissed the regulator overhaul as said: "We won't be taken for fools. Abolishing Ofwat and replacing it with a shinier regulator won't stop sewage dumping or profiteering if the finance and ownership structures stay the same." South West Water said it welcomed the report "and its focus on shaping a stronger water sector for the future"."The proposals outlined today reflect the importance of long-term strategic planning, local accountability, and better environmental and public health outcomes," it said."We are particularly supportive of efforts to update regulation, strengthen asset health, and introduce clearer national direction through a long-term water strategy." Analysis from BBC South West environment correspondent Kirk England "From sea swimmers to clean water campaigners, many will be hoping that Sir Jon Cunliffe's review will lead to change, particularly on tackling sewage spills."About a third of England's designated bathing waters are here in the South West."In 2024, although the overall number of spills by South West Water dropped slightly, to 56,000, the duration of those spills rose to 544,000 hours, up from 531,000 in 2023."South West Water has welcomed the publication of the Independent Water Commission's final report and has already said it is investing to tackle sewage discharges."But there are fears the proposed measures don't go far enough and will not lead to what so many people have told me they want to see - a significant and sustained reduction in sewage discharges into rivers and the sea."
The Independent
a day ago
- Business
- The Independent
‘Never again': Regulatory reform pledged to prevent repeat of water bill hikes
The Environment Secretary has said households will 'never again' face major water bill hikes as he announced an overhaul of regulation of the troubled sector. Steve Reed announced in a speech alongside the River Thames that regulator Ofwat would be scrapped, as part of measures to pull overlapping water regulation by four different bodies into one 'single powerful' regulator responsible for the whole sector. He made the announcement in response to an independent review by Sir Jon Cunliffe which called for the move, as one of 88 measures to tackle problems in the water sector. The review was commissioned by the Government to answer public fury over pollution in rivers, lakes and seas, soaring bills, shareholder payouts and bosses' bonuses. Mr Reed pledged the new regulator would 'stand firmly on the side of customers, investors and the environment', as he said the Government would cut sewage pollution by half by 2030 – based on a new, higher baseline of pollution in 2024 compared with previous targets relating to 2021. And it would oversee maintenance and investment in water infrastructure so that 'hard-working British families are never again hit by the shocking bill hikes we saw last year'. Questioned by journalists after the speech about future bill hikes, Mr Reed insisted it was 'absolutely the intention' that the reforms would ensure there was adequate investment in the long term to prevent the kind of 30% increase seen in customer water bills last year at the next price review in five years. He also accused the Tories of failing to ensure sufficient investment in crumbling pipes and infrastructure that would have prevented the recent hikes. But in a separate speech, review author Sir Jon warned that costs and bills are likely to continue to rise, as he recommended the Government introduce a national social tariff to help households struggling to pay. 'The cost of producing water and wastewater services is likely to increase over the medium and longer term as the industry has to replace ageing assets, respond to higher environmental and public health standards and continue to adapt to the challenges of population growth and climate change,' he said. 'And against that likely background of rising costs and rising bills, there is a need for a stronger safety net for the most vulnerable when exposed to water poverty.' Asked if investor returns will need to rise to attract the capital needed and contribute to bill hikes, Sir Jon said: 'All the investors I talked to said we are happy to accept a lower return … if you can give us lower risk on the downside. 'Bills will have to reflect what investors need, the equity they need. 'That is part of the cost of building the infrastructure that we need but at the same time, a regulator needs to continue to maintain pressure and efficiency.' Sir Jon's review did not explore renationalising water companies; ministers have refused to entertain the possibility despite demands from campaigners to return them to public ownership. Mr Reed warned nationalisation would cost £100 billion and slow down efforts to cut pollution. He said it was not the answer, adding: 'The problems are to do with governance and regulation, and we are fixing those problems so we can fix the problem of sewage pollution and unacceptable bill hikes in the fastest time possible.' The reforms would see a single regulator replace Ofwat and take in functions related to the water sector from the Environment Agency, which currently investigates pollution incidents and licenses water abstraction from the environment, as well as the Drinking Water Inspectorate and Natural England. Sir Jon suggested a new water regulator would take two years to set up after looking at the time frame for setting up Ofcom, the communications regulator, in the early 2000s. The process could involve bringing the different organisations together as one before integrating the staff and working out where there may be duplication or gaps. Sir Jon also said the Government will have to tackle the issue of securing a 'very high level of leadership', adding that the current system does not have the skills and expertise that will be needed in the new set-up. Asked if ministers need to carry forward all of his 88 recommendations to ensure a full reset of the sector, he said: 'I don't think you're going to solve the fundamental problem unless you tackle all of those issues. 'I think you can get improvement on all those dimensions, but I do think you need to address it all in order to move us to a different place.'
Yahoo
a day ago
- Business
- Yahoo
‘Never again': Regulatory reform pledged to prevent repeat of water bill hikes
The Environment Secretary has said households will 'never again' face major water bill hikes as he announced an overhaul of regulation of the troubled sector. Steve Reed announced in a speech alongside the River Thames that regulator Ofwat would be scrapped, as part of measures to pull overlapping water regulation by four different bodies into one 'single powerful' regulator responsible for the whole sector. He made the announcement in response to an independent review by Sir Jon Cunliffe which called for the move, as one of 88 measures to tackle problems in the water sector. The review was commissioned by the Government to answer public fury over pollution in rivers, lakes and seas, soaring bills, shareholder pay outs and bosses' bonuses. Mr Reed pledged the new regulator would 'stand firmly on the side of customers, investors and the environment', as he said the Government would cut sewage pollution by half by 2030 – based on a new, higher baseline of pollution in 2024 compared to previous targets relating to 2021. And it would oversee maintenance and investment in water infrastructure so that 'hard working British families are never again hit by the shocking bill hikes we saw last year'. Quizzed by journalists after the speech about future bill hikes, Mr Reed insisted it was 'absolutely the intention' that the reforms would ensure there was adequate investment in the long term to prevent the kind of 30% increase seen in customer water bills last year, at the next price review in five years. 'The reforms that we're bringing in are intended to prevent the circumstances that led to those bill hikes,' he said. 'We're bringing it in so that there will be adequate investment in the long term in our water pipes and our sewage pipes, so they don't ever again crumble away to the extent that a big bill hike becomes necessary.' He accused the Tories of failing to ensure sufficient investment in crumbling pipes and infrastructure that would have prevented the recent hikes. In his speech, Mr Reed said the water industry is 'broken' and has been allowed to fail under a 'regulatory system that let them get away with it'. 'Our rivers, lakes and seas are polluted with record levels of sewage,' he said. Mr Reed blamed soaring water bills for straining household finances and warned that poor infrastructure is holding back economic growth. But ministers have refused to entertain the possibility of renationalisation, despite demands from campaigners to return water companies to public ownership, with Mr Reed warning it would cost £100 billion and slow down efforts to cut pollution. He said nationalisation was not the answer, adding: 'The problems are to do with governance and regulation, and we are fixing those problems so we can fix the problem of sewage pollution and unacceptable bill hikes in the fastest time possible.' The reforms would see a single regulator replace Ofwat and take in functions related to the water sector from the Environment Agency, which currently investigates pollution incidents and licenses water abstraction from the environment, as well the Drinking Water Inspectorate and Natural England.
Daily Mail
a day ago
- Business
- Daily Mail
BREAKING NEWS Water bills set to soar by 30% in just five years as Labour confirms it will abolish Ofwat after damning report
Water bills are set to rise 30 per cent over the next five years, an independent report warned today as the Government confirmed the existing regulator will be abolished. Environment Secretary Steve Reed confirmed today that water regulator Ofwat will be scrapped as part of an overhaul of a 'broken' regulatory system. He said: 'Today I can announce that the Labour Government will abolish Ofwat. In the biggest overhaul of water regulation in a generation, we will bring water functions from four different regulators into one.' Mr Reed said the new single regulator would be 'powerful' and 'responsible for the entire water sector', with a clear mandate to 'stand firmly on the side of customers, investors and the environment'. 'It will prevent the abuses of the past,' he said. 'For customers, it will oversee investment and maintenance so hardworking British families are never again hit by the shocking bill hikes we saw last year.' Mr Reed also declared 'today marks the start of a water revolution' as he unveiled plans to create a single regulator for the water sector. He said the new body would end the 'tangle of ineffective regulation' and deliver for customers, investors and the environment. 'For the environment, it will cut all forms of pollution to clean up our rivers, lakes and seas for good,' Mr Reed said. Ofwat will remain in place during the transition, but he said it would be given a clear mandate to provide strong leadership in the interim. 'This is our chance to make sure our children and their children can create the same wonderful memories we remember from our own childhoods,' he added. 'Splashing about in the waves on the beach, rowing along a river, without having to worry about toxic sewage pollution. Today marks the start of a water revolution.' More to follow
