Water Companies: Regulation and Financial Stability Debate
Full Debate: Read Full DebateDepartment: Department for Environment, Food and Rural Affairs
Sarah Green
Main Page: Sarah Green (Liberal Democrat - Chesham and Amersham)Department Debates - View all Sarah Green's debates with the Department for Environment, Food and Rural Affairs
Water Companies: Regulation and Financial Stability
Sarah Green Excerpts(5 days, 9 hours ago)
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Sarah Green (Chesham and Amersham) (LD)
It is a pleasure to serve under your chairmanship, Mr Pritchard. I begin by thanking my hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) for securing this debate on something I know matters to a great many of my own constituents in Chesham and Amersham. The appalling examples of sewage-filled floodwater blighting lives in my constituency are part of a much bigger picture: a water industry that is not held to account by a regulatory system that is not fit for purpose. I therefore welcome today’s announcement of the independent water commission.
As a report published last year by Surfers Against Sewage states, part of the problem is the “severe budget cuts” that regulators have experienced, which have meant that even reported pollution events go uninvestigated and unpunished. Indeed, in 2022, the Environment Agency instructed its staff to ignore reports of low-impact pollution events as it did not have sufficient resources to investigate them. To the extent that that is the case, we get the environment we pay for—but that is only part of the problem. A report published by the previous Government in May this year makes clear that regulators must avoid drifting into unnecessary risk aversion. Internal culture should challenge excessive risk aversion, not promote it. One former employee of the Environment Agency described to me how some of those the agency regulates see it as a toothless tiger.
I suggest to the Minister that fixing the regulatory framework is not the only area worth looking at. There is also a need to make sure we are not creating more problems with our sewage system in the future. At present, our water companies are not statutory consultees on planning applications. Instead of asking whether the existing sewage infrastructure can support new developments, the right to connect means that water companies are required to make it work after the fact. That is surely nonsensical and something the Government can address as part of the work they are currently doing on the national planning policy framework.
I will close by thanking the many campaigners in Chesham and Amersham, including the River Chess Association, the Chiltern Society, Misbourne River Action and others, that have worked tirelessly on this issue. I pay particular tribute to local parish councillors who have found themselves at the forefront of these issues, becoming citizen scientists and experts in a way they never expected. I have been so impressed by their diligence and their dedication to doing their best to help their residents. However, they are volunteers committed to their environment and their communities; they should not be responsible for holding the water industry to account. That is what our regulators are for.