Environment Agency chair-to-be flags need for water policy integration and a long-term outlook

Better integration of the water policy landscape, and the need to deliver on long term water needs, were two priorities specified by Alan Lovell, the government’s preferred candidate for chair of the Environment Agency, when he was questioned last week by the Environmental Audit and the Environment Food and Rural Affairs Committees ahead of his formal appointment.

On the long term, Lovell said, reflecting on his time as chair of CCW: “There is such focus within the Consumer Council on talking to consumers, of course, about the level of bills, and the same is true, in my opinion, of the economic regulator Ofwat, that it has been under pressure to keep bills down. That has caused me some worry in terms of the long-term future of the water industry in particular. One of the many reasons why I am extremely keen to do this role is to play a larger part in the water sector as a whole and making sure that we are fit for 50 years’ time.”

Given his previous experience as an expert in rescuing troubled companies, the MPs questioned Lovell extensively on whether he had been appointed to turn the EA around, or at least restructure it. Lovell said “this is, in no sense, a turnaround” but he emphasised a keenness to look at options for greater integration between regulators. He said: “There needs to be better integration of the total water policy landscape. There are three regulators. It is curious. There is not a body looking after our water resources in 50 years’ time. The reservoir to be built in my county, finished by 2029, will I think be the first since 1971. I do not have the data, but that does not feel right. It feels to me as though that is an area that we need to do more on.

“On the other side, on the CSO issue…it is good that the OEP is going to be looking at the regulation within that space. If we can do it better, we shall be pleased to learn.”

Lovell supported an idea he said had been put forward by Natural England chair Tony Juniper for “an integration committee established involving EA, Natural England and the Forestry Commission, under ministerial leadership, which I think would give an opportunity to see if closer co-operation could be achieved without the disruption that would be caused by a reorganisation”.

When questioned as to the drivers for change, Lovell pointed to addressing gaps and overlaps, increasing efficiency and driving positive environmental enhancements.

Among other points of note from Lovell for the water sector from the session were:

• support for the modernisation and digitisation of the EA; • personal views in favour of smart meters; ring fencing water company fines to be spent on river restoration projects or similar rather than going to the Exchequer; and water companies receiving funding from developers via the new infrastructure levy to fund wastewater enhancements necessitated by new build; • asked what the most important elements of the EA’s five-year plan are, Lovell cited flood defence first, and water quality/sewer issues second; • he said water is good value for money compared with other utilities, and “having clean water is fundamental and is worth paying a high price”; and • he said the EA had sufficient teeth, and expressed a desire to press the case for enforcement, “including very possibly on the subject of the CSOs”.