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Updated Jul 27, 2021

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Water policy reforms to deliver ambitious environmental agenda

The Government, Environment Agency and Ofwat have set out an ambitious programme of reform to build back greener from the pandemic through the review of the Water Industry National Environment Programme (WINEP).

The WINEP set outs the actions water companies need to undertake to improve the environment. The programme has delivered significant benefits to water quality, biodiversity and water resources over the last 30 years, including increasing the proportion of "excellent" bathing waters from less than a third to over two thirds.

Recently improvements to the overall quality of the water environment have plateaued. The challenges of climate change and biodiversity, as well as population growth and emerging chemical contaminants, are preventing progress.

New reforms set out the ambition for a water sector that delivers for customers, the environment and wider society. They reflect the Government's aim for clean and plentiful water in the 25 Year Environmental Plan, which will be set out in the Environment Bill.

The Government's new draft Strategy Policy Statement (SPS) for Ofwat has also been published for consultation, with industry and stakeholders outlining the key priorities for the independent regulator to deliver on, including:

  • protecting and enhancing the environment;
  • a resilient water sector;
  • serving and protecting customers; and
  • driving markets to deliver to customers.

Environment Minister Rebecca Pow said water companies need to take action to improve the water environment and protect the nation's water supplies in response to the risks caused by climate change.

She added: "Water companies have a holistic role in delivering improvements to our environment – through delivering greater flood resilience, protecting water resources and addressing water quality issues. We want to see them deliver on this in the round through work to tackle climate change".

"Our priorities for Ofwat build on the work I have already undertaken to reduce harm from storm overflows and sets a clear expectation for water companies to significantly reduce the frequency and volume of sewage discharges from storm overflows".

Water UK Chief Executive, Christine McGourty commented: "Water companies are already playing a leading role and are investing more than £5 billion on environmental improvements over the next few years as well £2.7 billion on Green Recovery projects".

"However, we know there is much more to do and the WINEP and SPS represent an incredibly important opportunity to set in train the ambitious reforms we need to see in the next price review and beyond. We look forward to working with Government and regulators to ensure the final documents provide the best possible foundation for water companies to deliver the investment needed to help meet the significant environmental challenges ahead, while working towards a shared vision for the future".

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