Welsh Water ‘has to up its game’ Senedd report finds
DŴR Cymru Welsh Water is letting down customers as it fails to strive hard enough to tackle pollution and interruptions to supply and improve drinking water quality, a Senedd report has found.
The Senedd environment committee said Welsh Water bosses need to set more challenging targets and told the Welsh Government to set out a clear timetable for a ban on wet wipes including plastic, which are causing the majority of pipe blockages.
The Senedd’s environment committee took evidence about Welsh Water after issues with performance were made public.
Welsh Water is a not-for-profit company 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 Welsh Water for 2022, showing a two-star overall company rating, meaning “the company requires improvement”, down from a three-star rating in 2021 and a four-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 Welsh Water was one of seven companies categorised as “lagging”, meeting just five of its 12 key performance targets – the second year
Welsh Water 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 Welsh Water’s latest performance reports, it is struggling with some of these.
“Within a two-year period Welsh Water’s environmental performance, assessed by NRW, has dropped from a four-star ‘industry lead’ rating to a twostar 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. Welsh Water’s current level of performance must not become the norm.”
In its report, the committee has said Welsh Water should set a more stretching target for reducing pollution incidents by 2030, with a target of zero pollution incidents as soon as possible.
During evidence from Welsh Water, MSs were told: “The blockage problem of the sewer network is still the biggest cause of pollution in Wales.”
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.
Plaid Cymru MS Llŷr Gruffydd, the committee chair, 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 – Welsh Water 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 Welsh Water must rise to.
“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 Welsh Water 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, including introducing a ban on wet wipes containing plastic as soon as possible, and that the Welsh Government and its key partners, including Welsh Water, should effectively communicate Wales’ approach to tackling sewage discharges from storm overflows to improve public understanding of the issue.
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 wet wipes containing plastic closed on November 25, 2023 and responses are currently being analysed.
Dŵr Cymru Welsh Water was contacted for comment.