Environment Bill to extend regulatory powers

Ofwat and the Environment Agency are to be granted greater regulatory powers over water companies under the Environment Bill.

The policy, which was trailed in the Queen’s Speech and published today (15 October), will extend regulators’ controls to alter water companies’ licences as well as abstraction licences.

The policy statement set out that Ofwat would be able to modify the conditions of water companies’ licences. It said: “In a changing climate, these measures will ensure the water regulator has the powers it needs to respond to changing priorities.”

The policy statement stipulated government “reforms elements of abstraction licensing to link it more tightly to our 25 Year Environment Plan goal of restoring water bodies to as close to natural state as possible.”

Under the bill, the Environment Agency could propose a variation or revocation of an abstraction licence without liability for compensation.

This power is to be used in cases where there is risk or evidence of environmental damage, or if consistently less than the licence is abstracted.

Mimicking changes and progress in other utility sectors, government said the changes would “create a more flexible and transparent process.”

As well as changes to licences and abstraction rules there will be updates to the lists of substances deemed harmful to surface water and groundwater.

The policy statement outlines five principles at the core of government’s plans. The principles are: 1) environmental protection should be integrated into policy-making principle; 2) the preventative action to avert environmental damage principle; 3) the precautionary principle; 4) environmental damage should as a priority be rectified at source principle and 5) the polluter pays principle.

The document noted the drop in serious pollutant incidents from waste water from over 500 per year in the early 1990s to 57 in 2016.

It also highlighted benefits that investment in the sector since privatisation have brought as well as work on coastal flood defences but states there is more to be done.

“Our changing climate is associated with more extreme weather; higher risks of drought and an increase in flooding which seriously affects people’s lives and assets.”

Clean and plentiful water is a commitment of the government’s 25 year plan for the environment, which is bolstered by the powers given in the Environment Bill.

A Water UK spokesperson said: “It’s good to see that the Environment Bill focuses on many issues the water industry has been calling for action on, like a commitment to clear, long-term targets and the need to have resilient water supplies and drainage.

“Water companies are passionate about playing a positive role in protecting our natural world, as shown in the industry’s Public Interest Commitment which by 2030 will prevent the equivalent of 4 billion plastic bottles ending up as waste, and see the industry have net-zero carbon emissions.

“In the face of climate change and population growth, business as usual is not an option. We all need to take action to protect the nation’s water supplies, ensuring the best possible service for customers while protecting our environment. We look forward to working with the government to achieve this.”