The Guardian has revealed that water company bosses, the chairman of regulator Ofwat and the Environment Agency met for dinner at an exclusive private members’ club to discuss ways to quell public anger over tariff rises and sewage spills. did.
Campaigners say the closed-door meeting is an outrageous example of “regulatory co-opting” as Ofwat and the Environment Agency are supposed to hold water companies to account rather than help them with public relations efforts. It is said that it is.
Ofwat chairman Ian Kuchar and Environment Agency chief Alan Lovell will be joined by South West Water chairman Gil Ryder, Severn Trent manager Christine Hodgson and Southern Water chairman Keith Ruff. I had a dinner party with them. Northumbrian Water CEO Heidi Mottram was also invited, but it is understood she did not attend.
The dinner was held in 2023 as part of ongoing discussions about how to handle communications about sewage spills and rate increases, according to emails between attendees revealed to the Guardian under freedom of information laws. It is shown that it was held for the third time. These issues have attracted significant public outcry due to the environmental damage caused by the dumping of human waste into Britain’s waterways.
For the special occasion, dubbed the “Chairman’s Dinner” in the email, water board directors and government representatives will meet on September 25th at the Royal Automobile Club (RAC) in Paul. We ate in the luxurious Segrave Room, a private dining room. mall. RAC restaurant menu includes venison and wild mushroom pie £26.75, tasting menu £90 per person, or fish pie For £19.
The exclusive club is called “The Palace of Pall Mall,” and its website says it “boasts a dining experience perfect for every occasion,” as well as 108 bedrooms, a business center, a marble pool and Turkish bath, and four It is written that it has two squash courts. , gym and treatment room. His annual membership fee to the club is £2,230. The club is a royal purveyor and is currently chaired by Prince Michael of Kent. The RAC is a hangout for businessmen, with many millionaires among its members.
In the golden dining room, the group was welcomed with drinks at 6:30pm and dinner was served at 7pm. FoI emails reveal Ofwat and the Environment Agency chief discussed topics including “getting through the coming months, especially managing perception”.
They discussed how to shape the conversation around bill increases when they are announced to the public, writing in an email, “How do we shape the conversation around bill increases in light of the bill and the affordability debate?” “Should I send a message carefully?” it was revealed. “How do we explain the plan’s ambitions (improving national infrastructure, managing storm overflows, etc.) while striking a balance between responding to intense scrutiny and achieving affordable and achievable outcomes? ?”
Water conservation activist and former Undertones frontman Feargal Sharkey said the private dinner was outrageous and an example of “regulatory capture”. He said: “In my view, the industry and the regulator are clear cases of regulatory capture, and both are currently under tremendous public scrutiny and criticism, with no semblance of transparency or accountability. We are working together to avoid this.” This is pretty outrageous. ” He also called for the resignation of the chairmen and others.
James Wallace, chief executive of River Action UK, added: “It is outrageous that they are holding a closed meeting with the government.” One minute they’re threatening prosecution, the next they’re guzzling Chateau Margaux.
“While they bicker about how to pass bad news as good news, we, the public, are wading through the toxic effluent of their combined dishonesty and incompetence.”
Eleven water suppliers in England and Wales will publish new household tariffs in the coming days, which will come into effect from April. Industry body Water UK will then publish the average increase in bills in early February. Last year the price rose by £31 to £448. After years of sewage dumping, high executive pay, debt levels and huge dividends, the announcement of price increases will likely anger the public.
This may have been further discussed at another recent dinner. An email from Mr Lovell to attendees confirmed that another dinner would be held in January 2024, weeks before the bill increase was announced.
He said the September 2023 dinner was a “productive discussion among attendees,” adding that he looked forward to the next one. He also called on water companies to release storm flooding and sewage pollution data as early as January 1, 2024, which they have not done.
Another hot topic on the dinner agenda was ‘Events at Thames Water’. The beleaguered company is facing financial difficulties, with auditors warning it could go bankrupt by April without a cash injection. Last year, it emerged that the British government was drawing up emergency plans in the event of the UK’s collapse, amid fears that Britain’s biggest water company could not survive under a huge debt pile. Other water companies are believed to be facing similar, albeit less severe, financial pressures.
Severn Trent, Northumbrian Water, Southern Water and South West Water declined to comment on the record.
A spokesperson for Ofwat said: “Ofwat remains committed to holding water companies to account on behalf of customers and has imposed over £250m worth of fines and performance penalties over the past few years.” said. At this meeting, we asked water company chairmen to share their frustrations with progress in reducing pollution, the use of stormwater overflows, and the impact of proposed rate increases on customers, especially the most vulnerable. I made my concerns clear. ”
A spokesperson for the Environment Agency said: “It is not unusual for the Environment Agency head to meet with representatives of water companies. These are used to challenge the company’s performance and drive improvements expected of the regulator. It would be highly inaccurate to suggest otherwise.
“At the September 2023 meeting, the EA Chair made clear his disappointment with the performance of water companies. He reiterated the need for rapid investment and sharing of good practices, including continued strong enforcement. An overview of future initiatives taken by the Environment Agency was provided.
“Since 2015, we have continued to steadfastly hold water companies to account by tightening regulations and securing £150m in fines through prosecution.”
