Why we need to act now to Ban the Bailouts!
It's time to outlaw profit from pollution.
This year, campaigners across the UK have been calling on politicians to cut the crap and put an end to sewage pollution. The Government has listened and is now taking the first step to clean up our rivers, lakes and seas, by introducing the Water (Special Measures) Bill.
The Bill currently making its way through Parliament applies to England and Wales and promises things we have been fighting for: stop bonuses being paid to polluting water company bosses, create automatic fines for polluters and ensure every single sewage overflow must be monitored.
It’s a good start, but as it stands, this legislation fails to tackle our fundamentally broken water industry and make polluters pay.
Who pays for their mistakes?
In fact, there’s a risk that this Bill will give water companies the power to pass on the cost of their debt to their customers – not just their own, but across the industry.
If a water company runs out of money or can’t deliver on its duties, it should be placed into ‘special administration.’
The Government then appoints an administrator to manage that company temporarily so essential services are delivered. This is a good thing, as it can reform the water company to a more sustainable model.
The Bill protects taxpayers from the cost of special administration, like paying water company debts or pay off shareholders, but there is nothing to stop the water companies from passing on the costs to customers in the form of higher bills.
This is unacceptable. We want the Government to change the Bill to ensure neither taxpayers nor billpayers pay to bail out water companies in special administration.
The Government has repeatedly told us that they have ‘no plans’ to use this power. So, why won’t they simply change the bill to ensure it never happens?
We’re working hard behind the scenes to make sure they do just that, but we need the weight of public support to force them to change.
Legal duty to protect people and planet, not profit
The Bill also provides an opportunity for the Government to reshape the priorities of the water sector to protect public health and the environment, not to make profit for shareholders.
Ofwat, the economic regulator of water companies in England and Wales, currently has no legal duty to protect the environment. Instead, their key legal duty is to make ‘reasonable returns for water companies’. This means that for the last 30 years, Ofwat’s decisions are led by water companies’ profit – one of the main reasons for the state of our waters.
This is an opportunity for the Government to scrap this for-profit legal duty altogether and instead set out a duty to protect the environment and public health.
But we need you to help us show the Government this is what is needed. You can demand change by joining thousands of others and sign the petition today.
On the petition page, there is a full FAQs answering any other questions you have about this campaign.
Thanks for your support,
Team SAS