South West Water

Debate between Gordon Henderson and Robbie Moore

Tuesday 5th March 2024 Westminster Hall

[Robbie Moore]

That is why this Government have rolled out 100% monitoring of our storm overflows; once we have the data, we are able to hold failing water companies to account. That is exactly what this Government intend to do through our “Plan for Water”, which is all about more investment, stronger regulation and tougher enforcement.

I also wish to address some of the points made by my hon. Friend the Member for Newton Abbot (Anne Marie Morris) regarding South West Water’s resilience to drought, as I know many in the region experienced extended hosepipe bans. I am pleased to say that South West Water has informed us that, as of 22 February 2024, the Roadford reservoir is now at 100% capacity and Colliford is at 87%, showing significant improvement. The Environment Agency continues to work with the company on a range of new sources to improve resilience. I recently visited Hawks Tor, a former clay pit, that has been brought into the water supply to try to deal with some of those water resilience issues.

Many Members mentioned the issue of investment. Of course, addressing these concerns requires investment, and this responds to some of the points made by my hon. Friend the Member for Torbay (Kevin Foster). Following a DEFRA commission, Ofwat—which, it seems, the Lib Dems want to abolish—agreed to accelerate £128 million of funding to accelerate smart metering, build nutrient removal systems to improve river water quality and accelerate 15 storm overflow improvements in the Falmouth and Sidmouth catchments.

South West Water’s latest business plans include a significant £2.8 billion package of investment, which Ofwat is now scrutinising to ensure that it will truly deliver for customers and begin to turn its poor record around. Its commitments will also include achieving the lowest level of pollution incidence in the sector and significantly increasing water quality and water resilience by investment in new treatment works, reservoirs and tackling leakage. South West Water must now deliver on those ambitious plans, and this Government will hold it to account every step of the way. I look forward to my next meeting with the chief executive to be able to get an update on those plans.

I also wish to assure the House that the Government and our regulators, Ofwat and the Environment Agency, do not take underperformance lightly. As a result of failing to meet its performance commitments, Ofwat has directed South West Water to return £9.2 million to customers during the financial year of 2024-25, in addition to the £13.3 million returned in the financial year 2022-23. I again reiterate that, if the Lib Dems want to get rid of Ofwat, I am not quite sure who would be directing South West Water to do that.

South West Water was also instructed by Ofwat to produce a service commitment plan to demonstrate how it will meet the commitments made at the start of the current five-year price review period, and that was updated in November 2023. As I have said, I will shortly be meeting the chief executive of South West Water again to discuss progress on its plans and to hold the water company to account on its specific failures on pollution incidents.

When water companies fall short, we will not hesitate to hold them to account. Since 2015, the Environment Agency has secured fines of over £150 million, including a £2.1 million fine for South West Water in April 2023. Furthermore, under the action taken by this Government, we will be strengthening regulation to ensure that regulators have the tools to hold water companies to account. I want to thank all Members for their contributions today, and particularly my hon. Friend the Member for East Devon for bringing this important debate before the House.

[Gordon Henderson (in the Chair)]

The hon. Gentleman has one minute to wind up.