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by Karma Loveday

Lords seek answers from environment secretary while they await her inquiry appearance

The House of Lords Industry and Regulators Committee has written to environment secretary Thérèse Coffey MP asking for initial answers in writing by 13 January to a series of questions, while it waits for her diary to allow her to appear before its inquiry into the work of Ofwat, in 2023.


The committee’s chair Lord Hollick set out the following nine questions in a letter:


Why has the government failed to reduce the levels of sewage discharges in the UK’s rivers and beaches?


Is the government satisfied with the performance of Ofwat and the Environment Agency?


Do they work effectively together, and are they too passive in responding to water pollution?


Why has the government failed to require the regulators and water companies to agree and implement binding investment plans of sufficient scale to eliminate unacceptable levels of sewage spillages?


What is the government’s estimate of the level of infrastructure investment needed to eliminate sewage spillages?


Why has the Government failed to introduce measures requested by water companies to make water companies statutory consultees on new planning developments and to ban non-biodegradable wet wipes?


What level of return on capital invested in water companies does the government regard as acceptable?


What level of gearing in water companies is acceptable to the government?


Should Ofwat require water companies to surrender their licence to operate if they persistently fail to invest at the required level?


Does the Government believe that water company executives should receive performance-related bonuses in respect of years during which their companies have made persistent sewage spillages?


Does the Department for Environment, Food and Rural Affairs have the determination, resources, skills and information to hold regulators and water companies to account for spillages, agree binding financial targets to achieve the necessary levels of investment and penalise companies and executives if profits and returns are excessive?


Lord Hollick also asked Coffey for an earlier appearance before the committee than scheduled “if your diary frees up any time before then”.

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