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The leaders of water companies will face a ban on receiving bonuses if their companies are responsible for allowing illegal sewage spills to contaminate beaches and rivers.
The secretary of the environment urged leaders of water companies to accept accountability for “unacceptable violations” that harm the environment, while also declaring a ban on Sunday.
In the previous year, ten individuals in positions of authority in the water industry were given extra compensation amounting to £2.5 million. However, during the 12-month period leading up to November 2023, Surfers Against Sewage reported an average of 1,090 instances of untreated sewage being released daily.
At the same time, businesses announced their intentions to increase customers’ expenses by approximately £156 annually in order to fund initiatives aimed at reducing the occurrence of 140,000 sewage overflow incidents per year.
Regulator Ofwat will be taking forward a consultation to define the criteria for a ban which would apply to all executive board members and Chief Executives. It is expected to come into effect later this year, subject to the consultation.
The environment secretary, Steve Barclay, stated that it is unacceptable for anyone to benefit from unlawful actions and called for water company leaders to be accountable for this.
“Stronger measures are necessary to tackle the inadequate performance of water companies. I am glad that Ofwat is taking additional steps today regarding bonus payouts. It is unacceptable for companies to receive bonuses after committing criminal violations. This practice must come to an end immediately.”
He stated that he will provide more information about additional measures to improve the cleanliness of British waters.
The outcome of Ofwat’s consultation will establish important standards for the policy in the upcoming year.
The Department for Environment, Food and Rural Affairs states that potential consequences may involve legal action for the two most severe forms of pollution, such as significant pollution at a swimming location or protected area, or if a company is found responsible for serious shortcomings in management.
Advocates, the Labour party, and the Liberal Democrats have persistently urged for the implementation of this policy.
Steve Reed, the shadow environment secretary for the Labour party, stated that Labour has taken the lead once again and the Conservatives are following suit.
Last year, the Labour party urged for the water regulator to be granted additional authority in preventing bonuses for water executives who pollute. Despite no action being taken for 14 years, the Conservative party has finally been pressured into adopting this plan.
“We need to take additional steps by supporting Labour’s comprehensive strategy to improve the quality of our rivers. This includes holding accountable executives who repeatedly violate sewage dumping laws and subjecting them to criminal charges.”
According to Labour, Ofwat would have had the authority to prevent six out of nine water company executives from receiving bonuses last year.
In the meantime, advocates utilized social media to rejoice over the recently implemented policy. Surfers Against Sewage posted on X: “Our efforts are paying off in this battle. Let’s continue to push for an end to sewage pollution #EndSewagePollution”.
Source: independent.co.uk