Water companies that pollute the environment can face unlimited financial penalties from today (11 December) as the previous £250,000 limit has been scrapped.
The Environment Agency was granted additional powers under the Environment Act to enforce against companies found to have polluted with variable monetary penalties (MVPs) now extended.
Extended offences can now include breach of permit conditions at sites that discharge to rivers or the sea such as storm overflows and treatment works and illegal discharges to waterways where there is no permit, such as from agricultural slurry.
It will also cover breaches of permits at power stations or manufacturing sites that contribute to air pollution.
Extending penalties was first floated by one of the shorter-termed environment secretary Ranil Jayawardena last year who called for £250 million fines.
This was upped to unlimited by the next cabinet earlier this year. Following a consultation that received 70% public support of uncapped fines, the move was confirmed.
Penalties will be proportionate to the size of the offending company and nature of the incident. Serious offences will however continue to be dealt with through criminal proceedings, which have always carried the option for uncapped fines at the sentencing court’s discretion.
“By lifting the cap on these sanctions, we are simultaneously toughening our enforcement tools and expanding where regulators can use them. These changes will deliver a proportionate punishment for operators that breach their permits and cause pollution,” said Steve Barclay environment secretary.
Money raised through MVPs will be paid into the newly established Water Restoration Fund to be spent directly on repairing and enhancing the affected waterway.
The new powers were designed to speed up the process of the Environment Agency prosecuting polluters, which currently can take several years. Budgetary cuts by successive government’s since 2010 led to the environmental regulator admitting it lacked resources to properly regulate water companies.
Companies facing an unlimited MVP will have the option to appeal, which sources told Utility Week would remain a deterrent to the EA imposing a penalty for fear of high legal costs.
This, the source said, would also undermine the idea that fines could be administered quickly by the EA under its new powers because costly appeals would still need to be avoided.
This year, the Agency has issued penalties for incidents dating back seven years, which highlights the lengthy nature of the process.