Britain Will Make it Easier to Fine Water Firms for Pollution

The UK plans to make it easier to fine water companies that harm the environment, ramping up pressure on firms blamed for chronic sewage spills.

The government wants to allow the Environment Agency to impose “quicker penalties of up to £500,000 ($669,000),” it said in a statement on Tuesday. The move would effectively lower the standard of proof needed to enforce fines, making it simpler to hold water companies to account.

The government is consulting on the plans, which are part of a broader set of measures that include a clamp-down on bonuses for water executives. The utilities have come under intense scrutiny in recent years as they fail to stem leaks and spills while paying out hefty dividends and hiking customer bills.

“With new, automatic and tougher penalties for water companies, there will be swift consequences for offenses including not treating sewage to the required standard and maintenance failures,” Environment Secretary Emma Reynolds said in the statement.

The government has argued that the regulator currently struggles to impose financial penalties because it must prove an offense to the same high legal standard used in criminal courts, making most cases too expensive or time-consuming to pursue.

Government models based on utilities’ past performance suggest the proposed changes could cost the sector as much as £67 million a year, yet the actual figure may be lower since the policy is designed to drive reform. The consultation comes as the industry braces for a wider overhaul after an independent review called for a new watchdog with stronger oversight powers.

Photograph: Long Reach sewage treatment works, operated by Thames Water Ltd., on the banks of the River Thames, in London, UK, on Wednesday, March 6, 2024. Photo credit: Chris Ratcliffe/Bloomberg

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