What sanctions are Dŵr Cymru facing for poor performance on leaks and raw sewage spills following a report by the BBC on 7 June 2024 that pollution incidents have increased by 20 per cent in the last year?
We expect our water companies in Wales to deliver excellent services across all areas of operation. In July 2022, the then Minister for Climate Change issued our Strategic Priorities and Objectives Statement to Ofwat, which makes it clear that water companies should anticipate disruptions, maintain services for people, and protect the natural environment, both now and in the future.
My officials are working closely with our water companies and Ofwat to ensure they address all areas of concern. DCWW’s performance on leakage and per capital consumption (PCC) was disappointing, but it is reassuring that DCWW identified the misreporting of its figures through their own assurance processes, which will help rebuild customer trust and prevent future occurrences. To address its poor performance, DCWW has committed to investing an extra £59 million during the current 2020-25 price review period to tackle leakage and improve service. Additionally, in response to the issues identified, DCWW issued a £10 rebate for every customer last May, as part of a broader redress package totalling £40 million. This comprehensive plan aims to bring leakage levels down as quickly as possible and restore customer trust.
Robust asset management, particularly regarding Combined Storm Overflows (CSOs), is crucial for achieving resilience in the water and wastewater sector in Wales. They currently play an essential role in reducing the risk of sewers flooding homes, businesses, and public spaces, they should only be used as a last resort and in line with permits.
Natural Resources Wales (NRW) places regulatory controls on the number and volume of discharges from CSOs. NRW will investigate and, where appropriate, take enforcement action where permits are not being complied with.
Delivering significant improvement to CSO performance is an important focus of water company business plans in PR24 and builds on investment that has been made in the current investment period. As water companies finalise their business plans for the 2025-2030 period, we expect regulators and water companies to deliver challenging performance commitments and high standards of service.