Tory job at Ofwat protects profits from reducing sewage pollution, experts say

The Conservatives have pressed the water regulator to prioritize growth, which experts say will encourage water companies to take their first step towards reducing sewage pollution.

Actors fear the move will weaken Ofwat’s ability to crack down on water companies as it could force the regulator to consider the company’s financial position and the impact on its growth if the firm is overcharged for of pollution.

The Liberal Democrats have forced a vote in parliament on Wednesday on the government’s “new growth mandate” for Ofwat, which requires the regulator to “consider the desire to promote economic growth” when cracking down on water companies. They lost, as 50 MPs voted against the legal instrument and 395 voted in favor.

The growth function specifically mentions corporate sanctions as a way to hinder their growth. It says: “Some operational activities, and some manager activities, can be very disruptive to growth.

“These include, for example, operational actions that prevent or prevent a business from operating; financial penalties; and published, in relation to failure to comply with the rules, which undermines public trust. “

Last year water companies were ordered to cut more than £100m from customer bills after repeatedly failing to stop sewage pollution.

Executives fear that the growth task could make the manager less sensitive to sanctions because he would have to consider the business impact of the sanctions on the company.

The financial support of some water companies is already in a precarious position; Thames Water is currently at risk of collapse.

Richard Benwell, CEO of Wildlife and Countryside Link, said: “Growth work also places the fundamental rights of business over nature. The need for society and the need for the environment is absolutely clear – Ofwat should encourage investment. nature and ensure that polluters pay.

“The new job that forces the manager to think twice before taking environmental action is headed in the wrong direction entirely. Parliamentarians are right to oppose this step back.

“The only real economically responsible action is to protect the natural resources we depend on. Political parties need to commit to a new green job for regulators to ensure they act to stop climate change. of heaven and restore nature.”

Labor MPs voted with the government, and this is understood to be because they did not want to be accused of being “anti-growth”.

Liberal Democrat environment spokesman Tim Farron MP said: “Conservative MPs have just voted to help the water companies off the hook. Now Ofwat will be fighting the water companies single-handedly. tied at the back.

“This government is only talking, it does not take action when it comes to the sewage problem. Time and again Conservative MPs have voted against cracking down on polluting firms.

“It’s a disappointing choice by a government that is woefully out of touch with this environmental crisis. The public will be outraged to hear that an industrialist has been reduced further. Conservative MPs should hang their heads with shame.”

A government spokesman said: “Ofwat continues to have a clear environmental responsibility to ensure that water companies comply with the safeguards in place, and the expansion job will not change that.

“This extension allows Ofwat to deliver economic growth more effectively alongside its normal duties and does not in any way restrict how regulators operate the industry.”