Water Companies: Regulation and Financial Stability

Sarah Green Excerpts

Wednesday 23rd October 2024 Westminster Hall

[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.

Chalk Streams: Sewage Discharge

Sarah Green Excerpts

Tuesday 8th October 2024 Westminster Hall

[Victoria Collins]

Exactly.

I call on the Minister to provide proper protection, regulation and enforcement. Although Ofwat has finally taken action, ordering water companies to return £158 million to customers via lower bills, that is just a drop in the ocean—or, should I say, a drop in the chalk stream. We must go further. I call on the Minister for a blue flag status to protect our precious waterways, such as chalk streams, to replace Ofwat with a stronger regulator—a clean water authority—and to enforce tougher restrictions on water companies. A blue flag status for rivers and lakes would enshrine their protection, and our precious chalk streams would be ripe contenders to get such a status. Indeed, given their rarity in this world, it is worrying to know that only a dozen have sites of special scientific interest status that currently protects them.

[Sarah Green (Chesham and Amersham) (LD)]

Given that one has to go through quite an onerous process to get the SSSI status and that we recognise that chalk streams are rare, does my hon. Friend agree that a recognised special status and designation for chalk streams is needed, so that they can get the protections they actually need?

[Victoria Collins]

Absolutely. As my hon. Friend says, chalk streams are extremely rare. There are almost 200 in the world—not many at all. As for regulating our water, Ofwat simply is not fit for purpose, and we ask the Minister to replace it with a new clean water authority that takes relevant powers from the Environment Agency. We ask her to strengthen the regulatory powers and resources and set legally binding targets to prevent sewage discharge in our highly sensitive nature sites.

The clean water authority should have the power to revoke the licence of poorly performing water companies swiftly, fine top executives of water companies and initiate prosecution. It should increase water monitoring with new sewage inspectors, including unannounced inspections, with the aim of ending the self-monitoring of water companies. When it comes to water companies, we must hold them to account and reform the way in which they work. We must ask for meaningful targets and deadlines to be set for water companies to end sewage discharges, with local environmental experts on water company boards. Water companies should publish 25-year investment plans to encourage sound investment and promote the use of nature-based solutions.

--- Later in debate ---

[Emma Hardy]

I had just taken an intervention from the hon. Member for Chichester (Jess Brown-Fuller), who talked about the excessive removal of water and the situation that she finds herself in with the water company. I agree that we need to look for a long-term solution.

When we abstract too much water, that increases the concentration of pollutants and the water temperature, and decreases oxygen levels, leading to increased silt and loss of habitat. As the hon. Member for Henley and Thame (Freddie van Mierlo) mentioned, the physical habitat of our chalk streams has also been altered. They have been modified by people over recent decades, limiting the naturally varied habitats that plants and animals rely on and exacerbating the negative impacts of abstraction and pollution. Taken together, along with the sewage incidents, these pressures are placing our chalk streams under increasing strain and environmental stress.

In the constituency of the hon. Member for Harpenden and Berkhamsted, where chalk streams including the River Lea and River Ver flow, these pressures are no different. That is why this Government are continuing to ensure the conservation of chalk streams. Under the Government’s water industry national environment programme, improvements have been agreed for three waste water treatment works in the Harpenden and Berkhamsted constituency. They include stricter phosphorus limits for the discharge of fully treated sewage effluent and improved waste water flow monitoring to ensure that the required volumes of sewage receive full treatment before any storm overflow can occur. The capacity of the Berkhamsted waste water treatment works to fully treat sewage has also been increased from 247 litres to 316 litres per second, providing for a higher and larger quality of treated effluent.

The Environment Agency is investigating the cause of a prolonged storm discharge from the Markyate sewage treatment works into the River Ver. Unfortunately, as it is a live investigation, I cannot go into more detail now, but I greatly encourage the hon. Member for Harpenden and Berkhamsted to speak to the director of the Environment Agency about that and, of course, when the investigation is concluded, we can have a more detailed conversation about the issue and about what enforcement action can be taken.

I should also note that the Environment Agency has been working with Affinity Water and local partners to revitalise chalk rivers by leaving more water in the environment, addressing the issue of over-abstraction of our chalk rivers, and improving the physical habitat and water flow. Water abstractions across the catchment have been reduced by 33.3 megalitres per day, with a further reduction of 23.5 megalitres per day to be delivered by spring 2025. This is ongoing work in progress to address over-abstraction from chalk streams, which we rightly recognise is a concern.

[Sarah Green]

The Minister is making the point, rightly, about individual projects that water companies such as Affinity Water have invested in. What is missing is a strategy across the country for all chalk streams. That is why I am calling on her, in her position as a Minister, to give chalk streams the designation and special status they need so that this is not treated in a piecemeal way.

[Emma Hardy]

I thank the hon. Lady for her intervention. I was addressing the specific chalk stream raised by the hon. Member for Harpenden and Berkhamsted. However, I completely agree with the wider point about having an overall strategy to deal with the problems faced by water.

There is also the Spring Clean for Colne project, covering the River Ver and River Bulbourne. This partnership project is identifying, logging and mapping the outfalls, channels and ditches that could be a source of pollution in the Colne catchment. By first identifying the sources of pollution, we can then work on providing the solutions.

On a broader scale, which I think is the question that the hon. Member for Chesham and Amersham (Sarah Green) wanted me to consider, the Government are continuing to take action to ensure the recovery and preservation of chalk streams. Earlier this year, the Department for Environment, Food and Rural Affairs launched its species survival fund, which aims to bolster conservation efforts across the country. Through this fund, 20 conservation projects will collectively receive a share of £25 million, with the goal of restoring 3,300 hectares of vital habitat for wildlife.

Notably, two of these projects will specifically benefit our chalk streams. These are the partnerships for nature in the north Wessex downs area of outstanding national beauty, which will restore over three kilometres of chalk stream habitat, and the riparian habitat improvements in Hertfordshire’s chalk rivers from the Herts and Middlesex Wildlife Trust, which will restore chalk river habitats across 11.15 kilometres of the River Lea catchment. We are also contributing £1 million to chalk river initiatives in 2024-25, collaborating with partners on 30 projects aimed at safeguarding these rare and irreplaceable habitats. That effort is crucial to our commitment to protect these habitats as part of the water resources chalk partnership fund.

Taken together, those points demonstrate that this Government are continuing to view chalk stream recovery as a key, important issue. Although money has previously been invested in their conservation, I am aware—very aware—that more work needs to be done and that recovery is not a quick fix.