Lords slam government for complacency on water investment, bills and supply security

The House of Lords Industry and Regulators Committee has told environment secretary, Therese Coffey, to provide firmer policy detail and greater guidance to regulators on how to manage the trade-off between investment and bills at PR24.

The call was one of a number set out in a letter from the Committee, concluding its follow-up inquiry into Ofwat, the water industry and the role of Government. Peers also called on Defra to set out what action it intends to take to increase investment in the water sector; announce its proposals on social tariffs as soon as possible; provide long-term, outcomes-based targets for the key areas of investment needed in the sector, particularly in relation to infrastructure investment; and introduce compulsory water metering.

In its letter, the committee:

• warned that continued under-investment in water infrastructure will have serious long-term consequences for the environment and the security of water supplies, risking the possibility of future water shortages;

• expressed doubt that the sector will be able to attract the investment it needs, despite the publication of the National Water Strategy;

• warned that water bills are likely to increase, and expressed disappointment that the government has not introduced a single social tariff to ensure consistent support for those struggling to pay;

• was dismayed by delays in banning wet wipes containing plastics;

• concluded that Ofwat and the Environment Agency’s lack of confidence is holding back nature- and catchment-based approaches, in particular in relation to reducing storm overflow discharges; and

• concluded that proposals for reducing water demand were insufficient to meet government targets.

The committee slammed the “dismissive brevity and complacent tone” of the government’s response to its March 2023 The affluent and the effluent: cleaning up the failures of water regulation report.

Chair of the Industry and Regulators Committee, Lord Hollick, said: “While the government has begun to set out its vision for the sector, our cross-party committee has concluded unanimously that there is insufficient policy or drive to meet the government’s targets. Sadly, the only thing that is becoming clear in the murky, polluted waters of the sewage crisis is a lack of leadership and deep-rooted complacency.”