On 4 September 2024, the government introduced The Water (Special Measures) Bill into Parliament. Amongst other things, the Bill will significantly increase the regulatory powers of Ofwat and aims to:

• block bonuses for executives who pollute waterways
• bring criminal charges against persistent lawbreakers
• enable automatic and severe fines for wrongdoing
• ensure monitoring of every sewage outlet

For industry directors, this bill represents stricter responsibilities and potential punishments. New standards as to “fitness and propriety” will be introduced, performance-related bonuses will be blocked behind specific environmental standards, and new independent monitoring of all sewage outlets will require real-time data and annual pollution incident reduction plans. The Bill proposes empowering Ofwat to determine these rules, rather than stipulating them in primary legislation. 

Executives could face imprisonment if their company obstructs or fails to cooperate with inspection by regulators, whether by intent or neglect, and the standard of proof for financial penalties relating to pollution offences and information and reporting compliance will be lowered. Water companies may also be held accountable for enforcement costs. 

The Bill is in the early stages of debate by Parliament, so it may change significantly between now and its passing into law. Nonetheless, this Bill is a clear statement by the government of its intention to hold the water industry to account over recent failures and a reminder to directors in critical sectors of the significant responsibilities they have, and the severity of potential consequences for illegality or negligence in their field.