Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government what plans they have to authorise OFWAT (1) to levy personal fines, and (2) to bring criminal prosecutions, against directors of water companies responsible for discharging raw sewage in rivers and seas above the statutory limits.

Ofwat’s direct enforcement powers and sanctions are primarily focused on the regulated business. However, Ofwat is incentivising the link between performance and compliance and the role of individual company staff, which can deter poor performance or non-compliance. For example, under the Environment Bill we gave Ofwat increased powers to modify water company licence conditions under the Environment Act. Ofwat are now consulting on using these powers which will enable them to take enforcement action against companies that don’t link dividend payments to their environmental performance, or those failing to be transparent about their dividend pay-outs.

As the environmental regulator, the Environment Agency can and does prosecute company directors and other senior officers where the necessary evidence can be obtained to meet that test. As set out in Reg 41 Environmental Permitting Regulations 2016, the courts already have powers to fine directors and other officers of companies which are convicted of polluting rivers and coastal waters, where it can be proved that the offence has been committed with the consent or connivance of such officer or attributable to their neglect.

Ofwat, as the independent economic regulator, protects the interests of consumers by ensuring water companies properly carry out their statutory functions, including their environmental responsibilities. They will not hesitate to take enforcement action where these duties are breached.

For instance, in 2019, Ofwat imposed a penalty package on Southern Water of £126 million for spills of wastewater into the environment from its sewerage plants and for deliberately misreporting its performance.