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<p>The Environment Agency (EA) published the latest Environmental Performance Assessment
of water companies on 14 July (www.gov.uk/government/publications/water-and-sewerage-companies-in-england-environmental-performance-report-2021/water-and-sewerage-companies-in-england-environmental-performance-report-2021).
This report showed that most water companies' performance had declined. This is simply
unacceptable and the Government, Ofwat, and the EA share a joint commitment to tackling
this issue.</p><p>We have been clear about our expectations that the sector cleans
up their act. Where they are found to not be complying with legal obligations as a
minimum, government will work with regulators to ensure they take robust action. The
EA and Ofwat have powers under the Water Industry Act 1991, Environmental Permitting
Regulations 2016, and the Environmental Protection Act 1990 that allow Ofwat to issue
fines of up 10% of annual turnover, and the EA to prosecute water companies and their
directors, leading to Court imposed fines.</p><p>Since 2015, the Environment Agency
has brought 54 prosecutions against water and sewerage companies securing fines of
over £139 million. Following an EA investigation, in July 2021 Southern Water were
fined a record £90 million after pleading guilty to the thousands of illegal discharges
of sewage. Upon our request, the independent sentencing council have also agreed to
review guidelines to ensure fines applied by the Courts remain an effective deterrent.</p><p>The
Environment Act 2021 set new duties and transparency mechanisms into place to further
drive up the environmental performance of water companies. If we do not start to see
the changes we expect rapidly, we will not hesitate to take further action.</p>
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