Industry centre stage in government’s integrated Plan for Water

Environment secretary, Therese Coffey, frankly declared there are multiple problems with the management of the water system last week as she launched a new Plan for Water, which Defra boldly claimed would deliver “clean and plentiful water – a healthy water environment and a sustainable supply of water for people and businesses”.

Integration and speed

Coffey emphasised two elements in particular. First, the complexity of trying to transform the management of a highly interconnected water system, and the fact that the new Plan tries to grapple with this in an unprecedented way. She asserted: “The scale, the detail and the deliverability of this Plan I think puts it in a different league to anything we have ever done before – and I believe that will make all the difference.”

Second, the fact that transformation won’t happen overnight. Alluding to Labour’s water plan which among other elements seeks to cut storm discharges by 90% by 2030, Coffey said: “The truth is that however much we all want to see this fixed yesterday, never mind today, there is no way that we can stop pollution overnight…And anyone who tells you that they can – or indeed get £56bn of capital investment out the door and into the necessary improvements to fix everything within the next seven years – they are either detached from reality or being definitively dishonest with the public.”

Water industry front and centre

The Plan for Water seeks to transform the management of the water system, clean up the water environment, and ensure sustainable supplies. It brings together action already taken and underway with more investment, stronger regulation and tougher enforcement.

While the Plan spans sectors and actors, the water industry is front and centre of the expectation. Coffey made this plain at the launch. She said: “I want to be unequivocal. Water companies need to clean up their act. Water companies must cover the costs. And it is up to water companies to make sure they direct any profits they make from bill-payers’ hard-earned money into improvements.”

She explained that while a wastewater investigation is underway, “that level of investigation can be time-consuming” so the Plan takes action in addition to: ‘lean’ on water companies to scale up investment; tackle dividends and bonuses via Ofwat; and give powers to the Environment Agency to issue unlimited penalties for a wider range of offences without going through the courts. She said: “That will happen by the end of this year – so polluters, you have been warned, you have to pay up, and pronto.”

The Plan for Water included the following provisions:

More investment

• creating a new Water Restoration Fund – using money from water company fines and penalties paid for from water company profits, not by customers – to support local groups and catchment projects;

• £1.6bn of accelerated investment by water companies, announced last Monday, to spend on new infrastructure to tackle pollution and increase water resilience;

• delivering long-term catchment action plans – community-led schemes which aim to improve waterways and surrounding eco-systems – backed up by new funding;

• more than doubling the money for slurry infrastructure for farmers to £34m through the Slurry Infrastructure Grant, with further rounds to be launched later in 2023 and 2024;

• supporting farmers with food production by enabling them to store more water on their land – by reducing planning barriers for small reservoirs and with a second round of the £10m Water Management Grant to fund more on-farm reservoirs and irrigation equipment;

• deploying £1m investment in partnership projects each year to improve chalk catchments in addition to taking forward the recommendations from the Chalk Stream Strategy;

• launching a £6.6m Lowland Peat Research and Development programme in 2023 to identify the best way to reduce emissions from lowland peatlands; and

• considering actions to reduce the impacts of the strategic road network on water quality as part of developing the next Road Investment Strategy 2025-2030.

Stronger regulation

• banning sales of wet wipes containing plastic – subject to consultation – and writing to relevant;

• producers and advertising authorities about so-called flushable labelling on wet wipe packaging;

• developing new proposals to restrict the use of "forever" chemicals (PFAS) found in our rivers and seas – including proposals for a ban on PFAS in fire-fighting foams following recommendations made by the Health and Safety Executive (see story HERE);

• launching a new National Policy Statement on water resources so that key water supply infrastructure – such as reservoirs and water transfer schemes – can be built more quickly;

• an earlier deadline for water companies to reduce chemicals in wastewater treatment;

• integrating water and flood planning to target actions where they will have the biggest impact for nature;

• reducing water demand by encouraging water companies to consider how to increase smart meter installations rapidly for household and non-household customers;

• improving water efficiency in homes by developing minimum product standards for showers, taps, and toilets;

• commissioning water companies to provide the first 5000+ action plans on individual storm overflows; and

• rolling out standardised sustainable drainage systems in new developments – subject to final decisions on scope, threshold, and process following consultation in 2023.
  

Tougher enforcement

• changing the law to increase the scope and maximum amount the Environment Agency can secure in penalties for water companies for damaging the environment (Defra is consulting until 15 May, on increasing the cap on variable monetary penalties from £250,000 to £25m, £250m or its preferred option, unlimited and seeking views on introducing variable monetary penalties into the Environmental Permitting Regulations);

• increasing permit charges on water companies to fund more Environment Agency water company inspections, with new inspection targets; and

• reviewing and updating the existing memorandum of understanding between the Environment Agency and Ofwat for enhanced joint regulatory oversight of water companies.

Reaction

Many stakeholders have welcomed the plan’s new holistic approach and catchment focus – and in particular provisions such as the ban on plastic wipes and the river restoration fund. However, criticisms have included the absence of a long-term target for waterway health, the pace of action and level of resourcing.