Labour's Shadow Environment Secretary, Steve Reed, has launched a scathing attack on Ofwat, the water industry regulator, accusing it of failing to hold water companies accountable for sewage spills and excessive executive pay.
In a speech set to be delivered today, Reed will argue that Ofwat has been 'asleep at the wheel' while water firms have prioritised profits over infrastructure improvements. He will highlight how water bills have risen by 40% in real terms since privatisation, while companies have paid out £72 billion in dividends to shareholders.
Sewage scandal continues
The Labour frontbencher will point to the ongoing sewage pollution crisis, with raw waste being dumped into rivers and seas for over 3.6 million hours last year alone. Reed claims this environmental disaster has occurred 'on the Conservatives' watch' while they've allowed water companies to 'get away with environmental vandalism'.
Proposed reforms
Labour's proposed solutions include:
- Giving Ofwat new powers to block bonuses for executives who fail on environmental performance
- Introducing automatic fines for illegal sewage discharges
- Implementing a legally binding target to end 90% of sewage discharges by 2030
- Creating a new water quality regulator to monitor pollution
Reed will contrast Labour's approach with what he describes as the Conservative government's 'weak' stance, accusing Environment Secretary Ed Davey of having 'let the water companies off the hook' during his time in office.
The speech comes as water bills are set to rise by an average of £19 per year from April, despite ongoing service failures and environmental damage. Labour argues their plan would protect consumers while forcing the industry to clean up its act.
