The Environment Agency will be given the power to directly issue fines of up to £250 million to water companies for serious pollution incidents, under plans announced by the new environment secretary.
Ranil Jayawardena told the Conservative Party conference there needed to be consequences for water companies who fail to deliver on their environmental commitments.
Currently the maximum civil sanction, or Variable Monetary Penalty (VMP) the Environment Agency can directly hand out for an individual breach of the rules is £250,000.
In a release explaining the proposal, which will be subject to consultation, the Department for Environment, Food and Rural Affairs (Defra) said VMPs “can offer a quicker method of enforcement” than criminal prosecution. It stressed that VMPs were only issued for “more serious offences, including when there is evidence of negligence or mismanagement or when there is an environmental impact”.
Jayawardena said: “I have been clear that if water companies don’t do what is expected, there will be consequences. Bigger financial penalties will act as a greater deterrent and push water companies to do more, and faster, when it comes to investing in infrastructure and improving the quality of our water.
“This 1,000-fold increase sends a clear signal that we want clean rivers and coastlines, and that the duty falls to the water companies to deliver – the polluter must pay.”
Responding to the announcement, the Environment Agency’s chief executive Sir James Bevan said: “Since 2015 the Environment Agency’s criminal prosecutions against water companies have secured fines of over £138 million – with a record £90 million fine handed out to Southern Water for corporate environmental crime.
“However, criminal prosecutions can be lengthy and costly, so we welcome today’s proposals which will make it easier for us to hold water companies to account for environmental crimes.
“We will now work closely with government to put this plan into action.”
On his first day in office Jayawardena ordered sector chief executives to submit plans to make “significant improvements” to reduce sewage discharged into waterways. He said at the conference these had now been submitted and “now they must deliver”.
His comments follow similarly tough talk on water companies from Labour’s conference last week, where shadow environment secretary of state Jim McMahon pledged to strike off water company directors who “routinely and systematically break” rules.
Earlier today, Ofwat revealed that 11 water companies were set to pay back £150 million to customers after missing key outcome delivery incentives for 2021-22.