Southern Water

Debate between Rebecca Pow and Greg Clark

Monday 28th October 2019 Commons Chamber

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Rebecca Pow)]

It is late, but I think we are all still very focused on this issue, which is a tricky one. To be talking about sewage at this time of night is really focusing the mind. I congratulate my right hon. Friend the Member for Tunbridge Wells (Greg Clark) on securing this debate concerning Southern Water and the issues he is facing in his constituency. He is a strong spokesman for his local area, and rightly so. I just want to touch on this whole issue because we are talking about water and a water company, and water is so important in our lives. It plays an important role in our 25-year environment plan and there is a whole section on water in the Environment Bill, which had its successful Second Reading in this Chamber earlier tonight. Some of the things in the Bill will touch on issues raised by my right hon. Friend.

The Government recognise the need to secure long-term water supplies due to climate change and our growing population, so we expect the water industry to take more action in several areas, such as reducing demand for water alongside investing to increase water supplies. The industry also needs to take action on sewerage infrastructure. We recently consulted on a range of measures to reduce personal water usage, including a call for evidence. The need for investment in infrastructure is well set out in the draft national policy statement for water resources infrastructure. I am concerned, however, about the quality of the water environment, and there is more to be done. In the case of some water companies, a great deal more needs to be done.

Last week, the Environment Agency launched a consultation on how we protect and improve the water environment. The “Challenges and Choices” consultation explores how we can work together to manage our waters and deliver significant improvements to water bodies in England in the face of increasing pressures, one of which is housing and the growing population. Given such challenges, the Government want a water sector that delivers more for the customer and the environment. The Government and regulators are challenging the sector to improve its environmental performance, put customers at the heart of the business, and restore trust in the sector. I believe that my right hon. Friend actually used the word “trust” in his powerful speech.

Companies are responding to the challenge and have put forward proposals in their business plans committing to improve performance and offer bill reductions to customers, but there is much more to be done. For example, too much water simply leaks from the system, and significant investment is needed to improve the resilience of our water supplies and to improve service and environmental standards. In July, as my right hon. Friend might remember, the previous Environment Secretary called a meeting with all the water company chief executives to hold them to account over their performance towards customers and the environment. It was quite a groundbreaking moment that received a lot of coverage because he was quite ferocious with the companies.

Several companies, including Southern Water, had recently been assessed by the Environment Agency as demonstrating unacceptable levels of environmental performance. Companies were also challenged over customer service and leakage performance. As a relatively new Environment Minister, I am now working with regulators to put pressure on water companies to do more to increase resilience, enhance the environment and provide customers with value for money.

Water, as we all know, is a really precious commodity, and it needs to be treated as such. I want to be clear that Government and regulators are committed to taking action and holding water companies to account for their poor performance. Earlier this month, Ofwat issued a penalty against Southern Water of £126 million due to serious failures in the operation of sewage treatment works and for deliberately misreporting performance information. This was the largest enforcement action ever taken by Ofwat and resulted in a £3 million financial penalty and £123 million in rebates to be paid out to customers over the next five years.

I am pleased that Southern Water has made commitments to be more open and transparent about its performance with respect to the environment, and there have been changes in management personnel at the company. Additionally, Southern Water has now committed to reduce pollution incidents by 41% by 2025, along with reducing supply interruptions by 51%. The Environment Agency has set out ambitious measures in the water industry national environment programme, which will result in £4.4 billion of investment by water companies in the natural environment between 2020 and 2025, and £547 million of that investment relates to Southern Water. I am optimistic that that will help to tackle some of the biggest challenges facing the water environment, from the spread of invasive species to flow affected by chemicals and nutrient pollution. It is imperative that we clean up our water and, as Environment Minister, I want to see improvements.

To help to prevent sewage flooding incidents such as those that my right hon. Friend mentioned in his constituency, water and sewerage companies have a number of duties in relation to drainage, wastewater and sewerage, including a duty to effectually drain within their areas of operation. Drainage and wastewater infrastructure must be better prepared for extreme rainfall events to reduce the risk of overloaded sewers flooding homes or overflowing into rivers and the sea, which is simply unacceptable—my right hon. Friend referred to some incidents where that happened. I am committed to ensuring that water companies are making those preparations. That is why the Environment Bill contains a measure to place drainage and wastewater planning on a statutory footing, because whereas the water that comes out of our taps has previously been dealt with on a statutory footing, interestingly, sewage has not and has instead been dealt with through a voluntary arrangement. I am optimistic that that will be a strong feature of the Environment Bill, which we have talked about tonight.

That measure will ensure that sewerage companies fully assess their wastewater network capacity and develop collaborative solutions with local authorities and other bodies responsible for parts of the drainage system. That will be in addition to the statutory plans that companies already publish on managing long-term water supplies. South East Water, the water supplier for Tunbridge Wells, recently agreed and published its plan. I expect Southern Water to work collaboratively with South East Water to ensure that their plans align. Again, the Environment Bill contains measures on getting water companies to work together much more collaboratively, so that their plans overlap, whether they share the same boundaries or whether, as in this instance, one has the water coming out of the tap and the other deals with what goes down the loo. There will be a duty to work together much more closely on those issues.

The Government have also published a surface water management action plan, which sets out the steps we are taking with the Environment Agency and others to manage the risk of surface water flooding. The plan sets out 22 actions to improve our understanding of the risks of flooding and strengthen delivery. Key actions include making sure that infrastructure is resilient—something that I think my right hon. Friend was getting at—joining up planning for surface water management and building local authority capacity. One of the actions in the plan is to make drainage and wastewater management plans, and that is now in the Environment Bill. Ofwat has recommended that water companies should already have started their action plans, so Southern Water should be starting to formulate its plan. In addition, the autumn Budget allocated £13 million to tackle risks from floods and climate change at the national level. Local authorities have the opportunity to bid for some of that funding to address local needs.

My right hon. Friend also talked about new housing developments and the pressure that they can put on drainage systems. I fully understand—because he painted such a clear, if ghastly picture—what he said about the situation in Paddock Wood and the new housing there and in surrounding areas. I have a great deal of sympathy with those who have had to experience these sewage events. As a slight aside, Southern Water does not have a good record of responding to complaints either—indeed, it has a very poor record—and I imagine that a lot of those affected will have made complaints.

The national planning policy framework was revised in July 2018 and stated that sustainable drainage systems—SuDS, which I am a fan of—should be given priority in new developments in flood risk areas. The NPPF strengthened existing policy to make clear the expectation that SuDS are to be provided in all new major developments, unless demonstrated to be inappropriate. Local flood authorities must also be consulted on surface water drainage considerations in planning applications for all major new developments. This really ought to go some way to address issues raised by my right hon. Friend. Water companies should be consulted on these planning applications, and the plans should be rejected where it is thought that the infrastructure really is not suitable. Water companies will charge new developments for connection to the sewerage systems, so they have that right to charge where they think we need more connections, and they should use this money to pay for any upgrades.

The economic regulator Ofwat is currently in the final stages of its price review process with the water companies. Ofwat has pushed Southern Water to improve its performance, make efficiency savings and reduce bills. I support Ofwat in its work with Southern Water to help it to bring its business plan up to standard. Without a doubt, evidence highlights that the performance of Southern Water has left a great deal to be desired. If improvements are not forthcoming, I shall be requesting a meeting with Southern Water. I believe my right hon. Friend asked whether I would step in and take some serious action, and I shall be doing that and asking some serious questions.

[Greg Clark]

I am grateful for the commitment that my hon. Friend has given to take action. Will she agree to meet me, and perhaps some of the residents in my constituency, to discuss the response to her meeting with Southern Water, so that we can make an assessment of whether things are heading in the right direction?

[Rebecca Pow]

Of course I will meet my right hon. Friend. We want water companies that are working effectively and efficiently, and we need to understand the pressures they are under and how to deliver for all new houses. We are committed to building new houses as a Government. We need new houses, but they need to function properly, with the right infrastructure, so of course I will meet him.

In conclusion, we want to see a water industry that puts customers at the heart of the business, contributes to communities, and protects and enhances our precious natural environment. I will continue to push the sector and hold water companies, such as Southern Water in this case, to account if necessary.

Question put and agreed to.

Leaving the EU: Protection for Workers

Debate between Rebecca Pow and Greg Clark

Wednesday 6th March 2019 Commons Chamber

[Greg Clark]

On the good work plan, we will be introducing an employment Bill and it will of course be amendable, in the manner of legislation. We are provided, though, with a more immediate opportunity: that Bill is for the next Session, whereas I very much hope that the withdrawal Bill will be available during the weeks ahead and provide that immediate opportunity to express our determination to apply the commitment that the Prime Minister made on this issue.

The hon. Gentleman mentions the measures on the gig economy that are being contemplated by the European Union. Actually, that is a fine example of what I said earlier: those measures follow the commitments that we have made in the good work plan, and they are now making their way through Brussels. We were in advance of that. As I made clear in my statement, both those EU directives would go through the procedure that I described and would be available to the House, if Members thought there was anything extra in them. Actually, though, we think the directives are in many respects modelled on our own proposals.

On the ability of this House to enforce high standards, I say that that been the tradition. My experience as a Minister at European Councils over recent years is that our record of high standards when it comes to workers’ rights, employment protection and health and safety is looked at with admiration by many of our counterparts across the European Union. This allows us to continue that leadership.

[Rebecca Pow (Taunton Deane) (Con)]

I welcome this statement and the proposed clauses therein. As my right hon. Friend has been touching on this matter, does he agree that it is often the UK rather than the EU that has led the way not just on workers’ rights, but on environmental standards, and that we should be proud of that? Will he confirm that today’s announcements will ensure that we continue with these high standards in both areas and that we give due regard to any strengthening of environmental protections and regulations by the EU once we leave?

[Greg Clark]

My hon. Friend is quite right. Again, the provisions adopted by the Climate Change Act 2008 were not required by the European Union. They were a set of decisions that were taken by this House, and that has been our record. The proposals that I have set out allow us to continue to do that, while making sure that the House is not only properly informed but required to make an explicit determination that, if there are new policies that are adopted and directives that are proposed, they are debated and considered in this House. That seems to me to be a good mechanism to ensure that we are always aware of what is being done in the European Union after we have left it.

Nuclear Power

Debate between Rebecca Pow and Greg Clark

Monday 4th June 2018 Commons Chamber

[Greg Clark]

I am grateful for the hon. Gentleman’s welcome. He knows very well the potential of the development for his constituents and those beyond. I had the pleasure, during the Anglesey Day he hosted, to meet many of the companies that would benefit. It is the case, I think, that some young people already working on the site have been to Japan for training purposes, deepening their skills and broadening their horizons. They will be very important engineers of the future in the UK. I am delighted that, subject to the success of the negotiations, this opportunity will be available for them.

[Rebecca Pow (Taunton Deane) (Con)]

Does my right hon. Friend agree that, particularly with the electrification of more of our transport and heating, new nuclear is an essential part of providing the right energy load—including Hinkley Point C, adjacent to my constituency, with all the spin-offs it will bring—to meet our Government’s highly commendable carbon reduction commitments at least cost?

[Greg Clark]

I am grateful to my hon. Friend and I agree with her that nuclear should be a part of our energy mix. To be resilient, we should have a diverse energy mix. It is important that the cost of any project should be acceptable and affordable for bill payers as well as taxpayers. That will be an important principle in the negotiations, but if we are successful in that, it will make the contribution my hon. Friend describes.

Domestic Gas and Electricity (Tariff Cap) Bill

Debate between Rebecca Pow and Greg Clark

2nd reading: House of Commons
Tuesday 6th March 2018 Commons Chamber

[Greg Clark]

I agree with the hon. Gentleman, and I was saying in response to my right hon. Friend the Member for Preseli Pembrokeshire (Stephen Crabb) that I think the regulator should be more agile in responding to the behaviour that had come about. In fact, the energy companies themselves should have recognised this, and one thing that they said to me was that none of them wanted to act individually and that they would prefer to have a consistent approach.

[Rebecca Pow (Taunton Deane) (Con)]

The Secretary of State is making a valid case for the Bill, which, after all, is all about fairness for the consumer, but will he comment on the fact that we do not want the Bill to reduce competitiveness in the industry—I am sure that it will not—and is that not key? Competitiveness has already done so much for the industry, and we want to encourage it, not reduce it.

[Greg Clark]

I quite agree with my hon. Friend. In fact, the Competition and Markets Authority found that, in effect, two markets were operating. There is a vigorous and highly competitive market, but among those consumers who, for whatever reason, trust the company of which they may have been customers for some time to reward them for that loyalty, there is an absence of competition. We need to change that, but, as I shall go on to say, the analysis shows that the market is not fully competitive at the moment and will take some time to get to that stage.

Industrial Strategy

Debate between Rebecca Pow and Greg Clark

Monday 27th November 2017 Commons Chamber

[Greg Clark]

When the hon. Lady studies the White Paper in detail, she will see that one of the proposals is to look at the dynamic effect of investments—how a transport investment can transform the prospects of an area. That can be taken into account, we propose, in making transport decisions in the future, which will be of benefit to her constituents.

[Rebecca Pow (Taunton Deane) (Con)]

I, too, welcome the drive to up productivity with its links to the clean growth strategy. Does my right hon. Friend agree that this approach to upping productivity is one of the best planks that we can put in place for continued prosperity and sustainability? Would he like to pay a visit to Taunton Deane, to look at the opportunities provided therein for some of the funding to come our way? We must not forget the south-west, and we have a great opportunity on our new Nexus business site.

[Greg Clark]

I would be delighted to visit my hon. Friend’s constituency. As she points out, not just in this country but all around the world economies are becoming cleaner and greener, and if we can establish leadership in the research and development and, critically, the translation of those discoveries into industrial products and processes, we can benefit substantially. We are already doing that in the offshore wind industry and others. It is a world full of opportunities for more of that, and of course the south-west has a particular role to play in that.

Nuclear Safeguards Bill

Debate between Rebecca Pow and Greg Clark

2nd reading: House of Commons
Monday 16th October 2017 Commons Chamber

[Greg Clark]

Triggering article 50 of the treaty on European Union also requires triggering article 50 on membership of Euratom. That is not just the Government’s view; it is the European Commission’s view, too. The Commission clearly stated to the European Parliament that,

“in accordance with Article 106(a) of the Treaty establishing the European Atomic Energy Community, Article 50 of the Treaty on European Union applies also to the European Atomic Energy Community.”

That is the basis on which we are considering these safeguards.

[Rebecca Pow (Taunton Deane) (Con)]

Will the Secretary of State give an assurance that, as we leave the EU, the Bill will enable us to develop our own watertight system for complying with nuclear safeguards? As he says, that means introducing reporting and transparency to make it obvious that no nuclear material is going where it should not be going. We want assurances that all these boxes will be ticked, even if we leave Euratom.

[Greg Clark]

That is precisely the point of the Bill, and I will explain, perhaps at some length, the ways in which it might be done. I hope my hon. Friend will stay for that.

Retail Energy

Debate between Rebecca Pow and Greg Clark

Thursday 12th October 2017 Commons Chamber

[Greg Clark]

No. I have been determined from the outset to eradicate the abuse that the CMA has identified. It seems to me that if £1.4 billion of abuse has been identified, it is essential that that is eradicated. This problem is specific to modern markets—without the smart meters that will provide some relief from that—which is why it is important to provide interim measures, as the minority report of the CMA said. It is right to act on that. Everyone agrees—no one thinks that the market is fully competitive. The CMA in its majority report identified that the market was not functioning in a fully competitive way, and Ofgem said as much yesterday. As far as switching goes, in the last year only 16% of consumers switched, so 84% of the population did not. Until competition is fully established, it seems to me that people in that category deserve the Government to be on their side to ensure that they cannot be ripped off.

[Rebecca Pow (Taunton Deane) (Con)]

I congratulate the Government on putting the consumer first. It is a shocking revelation that £1.4 billion is being overpaid by consumers on their bills, so I welcome the fact that the Government are taking this seriously. Many of those customers are in Taunton Deane and many are the most loyal customers. Does my right hon. Friend agree that the only way to deliver best value for those people is through a truly competitive market and that nationalisation would certainly not be the answer?

[Greg Clark]

I agree with my hon. Friend. Many consumers who are loyal to a supplier, often for many years, assume not that they will get the best deal, but that a trusted brand will respect their loyalty and not abuse it. However, as the CMA has pointed out, that is not the case, and I think it is important that the issue is addressed before competition is fully established. As Ofgem said yesterday, highly priced, poor-value standard variable tariffs have had their day, and the energy companies should act to move customers away from them.