Peers push for new legal duty on water firms

The House of Lords has backed the introduction of new legal powers to force water companies to secure the separation of drainage and sewerage systems.

Peers voted by 184 votes to 157 in favour of an amendment to the Environment Bill, which would place a legal duty on water companies to take all reasonable steps to ensure untreated sewage is not discharged into inland waters.

The amendment, tabled by the Duke of Wellington, would also require water companies to demonstrate continuous improvement and progressive reductions in the harm caused by discharges.

He said that the government is “reluctant” to impose such a requirement on water companies due to concerns that they will prioritise sewage treatment ahead of other possible investments.

But such worries were not “persuasive”, the crossbench peer said: “It demonstrates the absolute need for the amendment and the necessity of placing a legal duty on the companies to bring to an end these damaging discharges.

“Only a legal duty would move these investments higher up the list of priorities.

“It should be possible to find a formula that involves some modest grants, some long-term borrowing, reduced dividends and above-inflation increases in wastewater or sewerage charges to residential and commercial users.” He pointed out that only five per cent of the £2.5 billion earmarked recently by Ofwat for green recovery investment would go towards tackling overflows.

Lord Goldsmith, minister of state for the environment, denied that the government is reluctant to influence investment decisions of the water companies.

He said that the drainage and sewerage management plans, which would be a statutory requirement under the bill, would be expected to include “considered actions” for reducing storm overflows and any harm they cause.

Lord Goldsmith added that while the government will “absolutely commit to pushing as far as it is possible to go” on reducing storm overflows, some would be very expensive to prevent.

“The reality is that, as our actions to considerably reduce overflows are successful, the remaining overflows are likely to be much more challenging to resolve and may therefore involve greater costs, with marginal, slight benefits.”