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Thames Water has risked a fresh backlash over its commitment to tackling sewage dumping after it declined to commit funds to a £180m industry-wide initiative to fast-track efforts to reduce pollution in England’s waterways.
On Monday, the government announced that six companies will allocate the amount over the course of the next year to avoid over 8,000 instances of sewage spills. This initiative is aimed at improving the track record of water companies in addressing these spills.
Despite being the largest water company in Britain with a debt of £14bn, it has chosen not to participate in the initiative. Government officials reportedly express disappointment in their decision.
The Guardian has learned that Thames Water, which has outlined an investment of £18.7 billion for the period of 2025 to 2030, has stated that it is not able to expedite its investment despite the government’s request.
The financial status of Thames Water is currently being closely monitored due to revelations that its parent company’s auditors have cautioned it could deplete its funds by April without additional investment from its shareholders. In order to meet its financial obligations, the company must repay a loan of £190 million by next month.
In an effort to alleviate its financial troubles, Thames Water has been seeking approval from governmental and regulatory bodies to raise rates by 40% and reduce penalties for sewage spill violations. The government has also made preparations in case Thames Water faces a collapse.
Several companies have committed to investing in the government’s accelerated investment plan, such as Anglian Water, which plans to allocate £50m by April 2025. United Utilities will be directing £39m and Severn Trent £41m towards investment by the same deadline.
Southern Water will invest £10m, South West £32m and Wessex £8m.
The government stated that Northumbrian and Yorkshire Water have both individually declared their intentions to accelerate investments worth tens of millions of pounds to address storm overflows in the current year.
The investments will fund the installation of additional sewer monitors, hiring of extra employees in wastewater departments, implementation of artificial intelligence technology to handle storm water levels, and expediting wetland programs.
Water companies will be receiving additional funds on top of the already planned £3.1 billion investment in storm overflow improvements from 2020 to 2025. This investment is part of the industry’s efforts to address the longstanding lack of funding in Britain’s aging infrastructure.
In December, the Secretary of the Environment, Steve Barclay, sent a letter to all water company leaders, urging them to act with more urgency to address high-spilling overflows in their networks.
There has been a lot of public outcry directed towards water companies due to their frequent discharge of sewage all over the country. According to the Environment Agency, there were over 300,000 spills in 2022, averaging to 824 per day.
Thames Water, a company with 16 million customers, has been known for its problematic behavior. Analysis from last year showed that the company had released over 72 billion litres of sewage into the River Thames since 2020. This amount is equivalent to 29,000 Olympic swimming pools. Not only that, but the Environment Agency has also charged the company with fines totaling £35.7 million for pollution incidents between 2017 and 2023.
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Government officials are aiming to combat underwhelming sewage practices among water companies. They recently revealed a proposal to prohibit bonuses for executives who do not effectively prevent unlawful sewage leaks.
The government announced an increase in funding for the Environment Agency in order to allow for a four-fold increase in inspections of water companies in the coming year.
Barclay stated that the £180m investment was a component of the government’s initiative to increase efficiency and accountability in water companies.
He stated, “The level of sewage being discharged into our rivers is completely unacceptable and the community rightfully expects measures to be taken. This funding will allow for the implementation of advanced technology, such as artificial intelligence, and the hiring of specialized personnel to identify and minimize spills.”
Thames Water opted not to provide a statement.
Source: theguardian.com