Water Industry
The current state of our waterways is unacceptable and reflects a failure of both regulation and political will. I have consistently campaigned for a water industry which puts people and the environment before profit.
The Government’s decision to establish the Independent Commission came not before time and marked the most substantial review of the water industry in nearly four decades. Liberal Democrats wrote a detailed letter to Sir Jon Cunliffe, attached to this email, setting out our recommendations for a fairer, greener, and more accountable water industry, and the reforms we believe are essential to restore public trust and environmental integrity.
We welcome the Commission’s final recommendation to replace Ofwat as the industry regulator, something my Liberal Democrat colleagues and I have been calling for since November 2022. After years of Conservative inaction, it is encouraging to see the Government finally acknowledge the need for change. This progress is also a testament to the tireless efforts of local campaigners and volunteers who have fought to clean up our waterways.
I also welcome Susan Davy’s announced ‘retirement’ as CEO of South West Water, following OFWAT’s investigation into SWW’s failure to properly control sewage spills into our coastal waters and rivers. However, while Susan Davy has taken the fall for this failure, the entire board of South West Water should go, as OFWAT’s report stated that SWW lacked “adequate oversight from its senior management team and Board”.
The job is far from done. We now urge the Government to move swiftly to establish the new, stronger regulator. It needs to be one with the teeth to hold water companies to account, ensure greater transparency regarding the real extent of sewage discharges, and end the sewage scandal once and for all.
In addition to the five principles outlined by Surfers Against Sewage, which I fully support, we are calling on the Government to go further by:
- Including independent citizen scientists and environmental experts on water company boards;
- Introducing a single social tariff to help eliminate water poverty;
- Strengthening the triggers for special administration to hold failing companies accountable;
- Ending sewage dumping in designated bathing waters by 2030;
- Banning bonuses for water company executives until spills and leaks are fully resolved;
- Implementing a three-year ‘cooling off’ period before regulators can hire former water industry employees;
- Expanding nature-based solutions to improve water resilience and restore habitats.
I have written to Emma Hardy MP, Minister for Water and Flooding, regarding the ongoing issue of sewage pollution in our Cornish coasts and waterways, with the following questions:
- What immediate action has been taken this summer?
- Why is there still no effective real-time public alert system?
- Will year-round monitoring and reporting be mandated? And when?
- What sanctions will South West Water face for past pollution?
The current model of water industry regulation is not fit for purpose. It has failed to prevent environmental harm, failed to incentivise long-term investment, and failed to maintain public trust. We must seize this moment to reset the system in favour of people, nature, and future generations.