There has been widespread media coverage today (17 December) following decision notices issued to Defra, the Environment Agency and Ofwat by the Office for Environmental Protection (OEP) as part of its investigation into regulation of network combined sewer overflows (CSOs).
The OEP's role is to contribute to environmental protection by scrutinising, advising and holding the government and other public authorities to account on its application of environmental law. We continue to cooperate with the OEP's investigation.
Today, this investigation has reached its next stage, with the OEP setting out their findings and the rectification measures they recommend. The OEP has alleged breaches by Defra with respect to the regulation of network CSOs. It is important to clarify that this is the OEP's view based on its investigation to date and these findings have not been confirmed by the Courts. We will consider these important findings carefully and respond in due course.
We agree with the OEP that it is important for Defra, the EA and Ofwat to be fully transparent when it comes to our roles and responsibilities in the regulation of storm overflows.
We are pleased that the OEP has acknowledged the swift and positive action Defra has already taken to address their concerns and clean up our rivers, lakes and seas:
- In November, we launched a consultation on updating guidance for water companies and regulators on storm overflows. The proposed updates make clear the legislative requirements for storm overflow improvements, as well as our expectations for regulators when monitoring sewage infrastructure.
- Just this week, the Water (Special Measures) Bill has had its second reading in the House of Commons. The Bill will strengthen regulation to ensure water bosses face personal criminal liability for lawbreaking. It will give Ofwat new powers to ban the payment of bonuses if environmental standards are not met and introduce new powers to bring automatic and severe fines against polluters. The Bill will also require water companies to install near real-time monitors at every sewage outlet with data independently scrutinised by the regulators.
- More widely, we have launched the largest review of the water sector since privatisation, creating an Independent Commission to examine the whole industry and its regulation. The Commission is part of our long-term approach to ensuring we have sufficiently robust regulation to attract the investment needed to clean up our waterways, speed up infrastructure delivery and restore public confidence in the sector.
Together, these measures will ensure water companies are better equipped to deliver future investment, including around £10bn between 2025 and 2030 to improve 2,500 storm overflows in England, and that the regulators have the tools they need to hold water companies to account for delivery.
A Defra spokesperson said:
"For too long, water companies have pumped record levels of sewage into our rivers, lakes and seas. In just 5 months, this Government has acted decisively to refresh outdated guidance to make extremely clear our expectations around storm overflows. We welcome the OEP's acknowledgement that this government is rectifying the issues identified.
"We will carefully consider the OEP's allegations of breaches before formally responding in due course.
"Furthermore, we're placing water companies under special measures through the Water (Special Measures) Bill, which includes new powers to ban the payment of bonusses for polluting water bosses and bring criminal charges against lawbreakers. We're also carrying out a full review of the water sector to shape further legislation that will transform how our water system works."
We will continue to work constructively with the OEP as their investigation continues and will formally respond to the OEP's Decision Notice by the statutory deadline, as set out in the Environment Act 2021.