Last week, Secretary of State for Environment, Food and Rural Affairs, Steve Reed, announced a series of measures aimed at resolving the ongoing crisis in the water sector.

As Ofwat publishes its draft responses on water company spending, these new measures signify a major shift after years of inadequate regulation. The goals are to curb illegal sewage dumping, attract substantial private-sector investment for infrastructure upgrades, and prioritise the interests of customers and the environment.

On 11 July, the Secretary of State met with water company Chief Executives, emphasising that under the current government, water companies will be held accountable for their performance regarding customers and the environment. He outlined his plans to collaborate with the sector and investors to attract investment, create jobs, and clean up the nation's polluted waterways.

Key announcements include:

- Ringfenced Funding for Infrastructure: Steve Reed has written to Ofwat, urging them to ensure that funding for essential infrastructure investments is exclusively used for customer and environmental benefits. Unspent investment funds must be refunded to customers and not diverted for bonuses, dividends, or salary increases.

- Customer and Environmental Focus: Water companies are expected to amend their ‘Articles of Association’ to prioritise the interests of customers and the environment as a primary objective.

- New Customer Panels: For the first time, consumers will gain the power to summon board members and hold water executives accountable through new, powerful customer panels.

- Enhanced Protection and Compensation: Subject to consultation, the legal compensation for customers when water service standards are not met will more than double. This includes new triggers for compensation, such as Boil Water Notices.

Statement from Steve Reed, Secretary of State for Environment, Food and Rural Affairs:

"We will never look the other way while water companies pump sewage into our rivers, lakes, and seas. This unacceptable destruction of our waterways should never have been allowed, but change has now begun so it can never happen again.

I have announced significant steps to clean up the water industry, reduce sewage pollution, protect customers, and attract investment to upgrade its crumbling infrastructure. While this change will take time, the Government will continue to outline further steps in the coming weeks and months to reform the water sector and restore our rivers, lakes, and seas to good health."