WQ85292 (e) Member declared an interest Tabled on 25/05/2022

How does the Minister reconcile Dŵr Cymru not having budgeted to introduce phosphate stripping technology to its sewage treatment infrastructure for five years with its decision to pay its three top executives bonuses worth £931,000 as part of a pay package of £2.6 million over the past two years?

Answered by Minister for Climate Change | Answered on 01/06/2022

Dŵr Cymru Welsh Water (DCWW) is subject to regulatory controls via the statutory price review mechanism undertaken by the independent economic regulator, Ofwat, which scrutinises water company investment plans and the charges levied on water users to fund them. This inevitably involves trade-offs between the level of charges paid by households and businesses and investment by the water companies.

Natural Resources Wales is responsible for setting the National Environment Programme in Wales, which sets an extensive programme of environmental improvements required of companies.

The causes of excessive phosphates on our water environment are complex, with multiple sources, and no single measure will resolve this. A cross sector approach will be required to deliver improvements.

DCWW are investing £836 million in their wastewater assets between 2020 and 2025. This includes, for example, phosphate removal schemes at 11 of their Wastewater Treatment Works within the River Wye SAC totalling £70.47 million of investment within the current AMP7. Six of schemes will operate in England, however, they will benefit the whole catchment.

Executive bonuses are a matter for the company remuneration committee.