Ministers have announced their latest plan to attempt to reduce pollution and sewage discharges, including unlimited fines on water companies and more inspections, but much of the cost will likely fall on customers
It includes previously announced proposals to bring forward £1.6bn of investment by water companies, as well as proposals to, ban plastic from wet wipes and speed up the planning process for major water infrastructure such as reservoirs.
understands that the Department for Environment, Food and Rural Affairs expects water bills to be impacted by the plan, which includes a promise to review the memorandum of understanding between the EA, which regulates the water companies’ environmental performance, and Ofwat, which regulates their finances.
Last year, in its strategic policy plan, Defra made clear to Ofwat that it wanted a greater focus on environmental outcomes in the upcoming price period, which regulates what water companies can spend.to fund infrastructure spending by Ofwat, with any additional spending needing to be funded by outside investment.
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