The national water company watchdog, Ofwat, has this week enacted new powers to hold polluters to account by requiring companies to take account of environmental performance and customer delivery when paying dividends.
This is a personal victory for Dr Hudson who has long campaigned for water companies to clean up their act and recently wrote to David Black, the Chief Executive Officer of Ofwat, urging him to link dividends to performance. A full copy of the letter, sent on Thursday 2nd March, is available here: www.neilhudson.org.uk/news/dr-neil-hudson-mp-backs-further-measures-clean-our-rivers-and-lakes-water-company-dividends
The changes have been made possible by the Conservative Government’s Environment Act 2021 which gave Ofwat new powers to change water company licences without consent from water companies.
Dr Neil Hudson, MP for Penrith and The Border, said:
“I know from speaking to constituents that trust in water companies is at an all-time low I know from speaking to constituents that trust in water companies is at an all-time low. I’ve shared in their outrage at unacceptable levels of sewage being released directly into our precious waterways. Clearly this inadequate performance on sewage cannot be compatible with shareholder pay-outs.”
“That is why I wrote to Ofwat to link dividends to performance, and I am pleased with their reaction. Enabled by our Conservative Government’s Environment Act this represents the most recent step in a long list of action on water company pollution. Other steps I’m proud to champion include increasing the number of sewage discharge monitors in Penrith and The Border, backing up our Storm Overflows Discharge Reduction Plan with a £56 billion capital investment over 25 years, and securing record fines for water companies breaking the law which will now be invested in schemes that benefit our natural environment.”
Water Minister Rebecca Pow added:
“It is wrong for water companies to be responsible for environmental damage and poor performance but not face the penalties. It has been happening too often and it needs to stop.
“These new powers, made possible through our Environment Act, will enable Ofwat to clamp down on excessive cash pay-outs and make sure companies put customers first. This will apply when a company is not meeting expectations on performance or is facing questions over its financial resilience – and ultimately means we go further in holding water companies to account.”
