Welsh Water told to up its game after leaks, pollution and supply issues (original) (raw)

Dwr Cymru Welsh Water isn't working hard enough to deal with pollution, drinking water quality and supply interruptions is letting down customers, a Senedd report has found. Senedd members who looked into their efforts about tackling pollution say they need to set more challenging targets and have also told the Welsh Government to set out a clear timetable for a ban on wet wipes including plastic, which are causing the majority of blockages.

The Senedd’s environment committee took evidence about Dŵr Cymru after issues with performance were made public. Dŵr Cymru is a ‘not-for-profit’ organisation and has no shareholders but is responsible for maintaining the water and sewer network. Natural Resources Wales (NRW) is responsible for regulating its operations. Ofwat has duties include protecting the interests of consumers, ensuring water companies carry out their statutory functions and has a range of powers, including setting price limits and performance targets through the five-yearly price reviews.

In July 2023, NRW published its annual environmental performance report for Dŵr Cymru for 2022 showing a 2-star overall company rating, meaning “the company requires improvement," down from a 3-star rating in 2021 and a 4-star rating in 2020.

Pollution incidents had increased by around 7% compared to 2021, with 89 incidents of which five were serious. Self-reporting of pollution incidents performance also saw a deterioration.

Two months later, in September 2023, Ofwat published its water company report for 2022-23 and Dŵr Cymru was one of seven companies that have been categorised as "lagging", meeting just five of its 12 key performance targets. The second year Dŵr Cymru has been in the bottom category.

The report says: "The pressures facing water companies in Wales and the rest of the UK are well known: archaic infrastructure, population growth and the effects of climate change. Nonetheless, water companies have statutory duties to fulfil, regulatory requirements to adhere to, and service commitments to meet. Based on Dŵr Cymru’s latest performance reports, it is struggling with some of these.

"Within a two-year period Dŵr Cymru’s environmental performance, assessed by NRW, has dropped from a 4-star ‘industry lead’ rating to a 2-star rating, with the company classed as in need of improvement. Not only that, its wider performance has been categorised as ‘lagging’ by Ofwat for the second year in a row. This is deeply disappointing. Dŵr Cymru’s current level of performance must not become the norm."

In its report, the committee has said Dŵr Cymru should set a more stretching target for reducing pollution incidents by 2030 with an target of zero pollution incidents as soon as possible.

During evidence from Dŵr Cymru, MSs were told: “The blockage problem of the sewer network is still the biggest cause of pollution in Wales" and backed a ban of wet wipes containing plastic. The report also calls on the Welsh Government to lay out its timetable for banning wet wipes containing plastic as soon as possible - as wet wipes cause the majority of blockages.

Chair of the Senedd's environment committee, Plaid Cymru's Llyr Gruffydd MS said: "Pollution, leakages, drinking water quality problems and supply interruptions are just some of the issues Dŵr Cymru is struggling with. On top of the constant sewage discharges which we’re all too familiar with, there’s only one conclusion to be drawn, Dŵr Cymru needs to up its game.

"Extreme weather events and climate change are wreaking havoc on the ageing water and sewage system. With the effects of climate change set to worsen over the coming years, Dŵr Cymru needs to find long-term sustainable solutions that are affordable to customers. It’s a challenging task, but it’s one Dŵr Cymru must rise to. For the latest politics news in Wales sign up to our newsletter here.

"Increases in customer bills are never welcome – even less so during a cost-of-living crisis. With investment in infrastructure sorely needed, regrettably, there’s no escaping them. Customers will, quite rightly, expect to see more for their money

"Dŵr Cymru must work harder and faster to return to an industry leader in environmental performance," he said.

The report makes 12 recommendations to the water company and Welsh Government, including to report back to explain how it is planning against future climate pressures to mitigate the risk of serious pollution incidents such as those which occurred during the drought and high temperatures experienced in2022.

It also raises questions about the organisation, saying Dŵr Cymru should "provide details of its internal governance arrangements and demonstrate how they are being utilised to hold company executives to account".

There are also recommendations for the Welsh Government, which includes saying it should introduce a ban on wet wipes containing plastic as soon as possible and give the committee a timetable for that, and for the Welsh Government and its key partners, including Dŵr Cymru, should identify ways to effectively communicate Wales’ approach to tackling sewage discharges from storm overflows to improve public understanding of the approach.

A Welsh Government spokesperson said: "We welcome the report and its recommendations. Our water sector is facing an immediate and unprecedented challenge but we remain clear that water companies in Wales must deliver excellent services and outcomes.

"We will continue to work in partnership with water companies and others to address the Committee’s recommendations and ensure improvements are of the standard people in Wales expect and deserve to see."

They further added that a joint UK-wide consultation on proposals to introduce a ban on plastic containing wet wipes closed on November 25, 2023 and responses are currently being analysed.

Dwr Cymru said: "We welcome the Committee’s report which acknowledges the increasing pressures affecting the water sector and Dwr Cymru specifically - in particular, the impact of more extreme weather reflecting climate change, and the need for much increased investment whilst ensuring bills remain affordable by customers.

"We have been very disappointed with our recent performance but are well on with implementing the detailed plans we have drawn up to deliver the improvements needed: however, there are no easy or quick fixes. We will not shy away from these challenges and are targeting a return to achieving 3* environmental performance for the 2024 reporting year.

"By the end of this year we hope to have our record £3.5bn business plan for 2025-2030 approved by Ofwat: this doubles investment in environmental performance and makes possible significant improvements across those other areas referred to in the Committee’s report where we are not where we want to be. We are reviewing the detail in the report and will respond in full in due course."