(Bloomberg) -- The UK government will impose new rules on water companies in England and Wales in a bid to curb sewage spills into rivers and seas.
The Water (Special Measures) Bill, outlined in the King’s Speech, seeks to push water company bosses to take personal responsibility for sewage spills. That includes new powers for the industry regulator, Ofwat, to ban bonuses for executives at companies that fail to meet environmental standards and asking chief executive officers to agree a code of conduct.
Sewage spills into rivers and the sea have caused widespread public anger, with many bathing sites now being tested by citizen scientists who don’t trust the companies to keep them safe. The new bill will require water companies to install real-time monitors at every sewage outlet, with data that can be accessed by regulators.
Ofwat will also have new powers to bring in automatic and “severe” fines without a chance for companies to appeal. On Tuesday, Ofwat confirmed it has enforcement cases open against all 11 of the UK water companies it regulates for spilling waste. It already has the power to fine business units as much as 10% of their revenue if they’re found to be in breach of licenses.
The new Labour government’s measures build on rules brought in by the previous Conservative administration, including banning bosses from receiving bonuses if a company has committed serious criminal breaches. Last year, the sector paid out £9.7 million ($12.7 million) in bonuses to water and sewage company executives in England and Wales despite poor performance in the sector.
The new bill goes further, seeking to ensure that companies that have underspent on their investment plans cannot use that money to pay bonuses.
Labour said the new bill would only be a first step, with further legislation planned to bring UK waterways into good health. It said four in five rivers, lakes and other surface waters are not in good ecological condition, or on a trajectory toward it.
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