Water companies could face legal action after investigation launched into sewage treatment works

The Environment Agency (EA) and Ofwat have launched a major investigation into sewage treatment works, after new checks led to water companies admitting that they could be releasing unpermitted sewage discharges into rivers and watercourses.

This will see an investigation involving more than 2000 sewage treatment works. Any company caught breaching their legal permits could face enforcement action, including fines and prosecutions. Fines can be up to 10% of annual turnover for civil cases, or unlimited in criminal proceedings.

In recent years the EA and Ofwat have been pushing water companies to improve their day-to-day performance and meet progressively higher standards to protect the environment.

As part of this, the EA has been checking that water companies comply with requirements and has asked them to fit new monitors at sewage treatment works. This is to make sure the right levels of wastewater are being treated before overflows are allowed to enter the environment.

Following this action by the EA, several water companies have now revealed that many of their sewage treatment works may not be compliant. This would mean that water companies are in breach of their permits and failing to meet their legal duties.

EA and Ofwat are now looking into all water and sewerage companies to assess the scale of the problem.

Any company caught breaching these minimum standards will face a range of possible enforcement action – up to and including prosecution.

Emma Howard Boyd, chair of the Environment Agency, said:

“Any water companies in breach of their permits are acting illegally. This is a major issue of public trust. Water company boards must certify every year that they have adequate resources to fulfil their regulated activities. Only now, just before new monitors are installed, have companies reported concerns over potential problems. The EA has begun an immediate investigation of 2,480 sewage treatment works and will prosecute where necessary.

“The private sector is under increasing pressure to demonstrate tangible commitments on protecting the environment. This shows why we need robust and well-funded regulation to provide the public, investors and  customers with assurances about what is being delivered on the ground. I would like to see the levels of penalties for corporate environmental crime in England go up significantly. More attention should also be paid to the directors of companies that are guilty of repeated, deliberate or reckless breaches of environmental law. Such directors should be struck off and in the most grievous cases given custodial sentences.”

Jonson Cox, Chair of Ofwat, said:

“Customers pay water companies to treat wastewater and protect and enhance rivers and wildlife. The public will be extremely disappointed if these reports are confirmed. Ofwat takes any reports of water companies breaking the law very seriously.

“We have launched an investigation relating to companies’ management of their wastewater treatment works which will examine any instance of systemic management failure, or the misreporting of data. If we find reason to act, Ofwat will use our full range of powers to hold companies to account for their failures and to require them to put things right in very short order.”

Environment Minister Rebecca Pow said:

“This new information is shocking and wholly unacceptable. We have been repeatedly clear in Parliament in recent weeks that we need to tighten up existing rules but also raise standards across the board when it comes to protecting our rivers. That means urgently addressing issues of non-compliance, but also going much further to reduce the harm caused by the discharges that should only be happening in exceptional circumstances. I want to see water companies spending far more on better infrastructure, and far less on payouts to shareholders.

“I have made my expectations of water companies and their legal duties crystal clear. Water companies must take urgent and immediate steps to abide by their legal duties. I will also be remaining in close contact with the regulators about any fines, prosecutions or other enforcement action that is deemed necessary.”

The Government has been repeatedly clear that the amount of sewage discharged into our waters by water companies is unacceptable, and has taken direct action to accelerate progress in tackling it. The Environment Act introduced clear new duties to legally require water companies to make progressive reductions in the adverse impacts of storm overflows.

Any water companies not abiding by their permits are expected to take immediate action to address any non-compliance while these investigations are ongoing.

ENDS