Water companies revealed to escape fines as Lib Dems force new sewage vote in Parliament

EMBARGO: 22.30 Tuesday 8th October

Liberal Democrats to force parliamentary vote on outright ban on water company bosses bonuses

New Freedom of Information Request reveals Ofwat has failed to levy any fines against disgraced firms and employs just 8 full time staff on sewage investigations 

Ed Davey slams government decision to let Ofwat decide new water company bosses bonuses

The Liberal Democrats plan to table an amendment which outlaws water company bonuses as the government's new Water Bill enters Parliament today (Wednesday 9th October).

It comes as a shocking new Freedom of Information request by the Liberal Democrats found that Ofwat admitted “we have not issued any fines in connection with how water companies manage their sewage treatment” Since they launched their investigation into water companies’ sewage discharges in November 2021. Instead, Ofwat is still in “consultation” with the water companies it aims to fine. 

The new findings revealed by the Liberal Democrats goes on to state that Ofwat’s investigation into sewage treatment works has a staffing of just 8.5 full-time employees, “many” of whom are working on the report “alongside other projects”. 

This scant, part-time staffing raises serious questions over the regulator's resources and powers to properly scrutinise  water companies it oversees - particularly given that Ofwat’s CEO called the project “the largest and most complex investigation” the watchdog has ever undertaken.

Ofwat told the Lib Dems that “many of the people working on the investigation do so for a portion of their time alongside other projects”, and that the regulator is “in the process of recruiting further staff”. 

Under the government’s new Water Bill, water company executive bonuses will be determined by key test indicators established by Ofwat. Liberal Democrat Leader Ed Davey is calling for Ofwat to be scrapped as a failed regulator which should have no role in determining water company bonuses.

Analysis of Company House records by the Liberal Democrats has found water company executives have made £35 million in bonuses since 2021. 

Liberal Democrat Leader Ed Davey said: 

“It is time for Parliament to stand up and take action on the sewage crisis after years of failure under the Conservatives.  

“The new government’s attempt is sadly a job half done. A toothless and tired regulator will fail to end the scandal of multi-million pound bonuses for sewage dumpers. 

“We need water company executive bonuses banned until the sewage dumping stops. This disgraced industry has shown it is not worthy of any bonuses. 

“Conservative MPs spent years voting against a ban on sewage bonuses and propping up a failed regulator. It is time to rip up the industry, with companies which no longer put profit before the environment, and a proper regulator with real power.

“Liberal Democrat MPs standby ready to work with the government to make sure the new Water Bill protects local communities from foul sewage.”

ENDS