Welsh Water warned to ‘do better’
SENEDD Members have warned Welsh Water must take urgent steps to improve, with growing calls for a regulatory and governance overhaul amid concerns about a lack of accountability.
Llŷr Gruffydd, who chairs the Senedd’s climate change committee, led a debate on a report following an inquiry on the performance of Welsh Water.
Mr Gruffydd told the chamber Welsh Water has dropped to a two-star environmental rating, with its overall performance categorised as “lagging” for the second year running.
Warning of growing public anger over sewage spills, he said: “Pollution, leakages, quality and supply interruptions are just some of the issues Welsh Water is struggling with.”
Mr Gruffydd, who represents North Wales, warned: “There’s a continuing public perception that Welsh Water can illegally spill sewage and get away with it scot-free.”
He emphasised the only acceptable number of pollution incidents is zero.
Lee Waters suggested goodwill towards Welsh Water, which is owned by Glas Cymru, a non-profit company, has constrained scrutiny and challenge. He told MSs the not-for-profit model should not excuse poor performance nor inefficiency.
He said: “Without the pressure and scrutiny of shareholders, there is a particular need to ensure there is robust questioning of the company’s performance.”
Mr Waters, who stood down as deputy minister for climate change last month, said Ofwat applies a one-size-fits-all approach to regulation which has not served Wales well.
Mr Waters said the scandal at Thames Water shows private companies underperform and have poor governance too, “and Ofwat didn’t do its job there either”.
Adam Price questioned whether the Glas Cymru model works, saying Scotland has outperformed Wales over the past two decades.
The former Plaid Cymru leader told the chamber Wales has the powers to diverge from the England-and-Wales regulatory system and scrap Ofwat.
Mr Price also urged the Welsh Government to request further devolution of full powers over water from Westminster.
He said: “Now is the time for us to have a broad-ranging debate in Wales as to whether the model we have within the water sector is working for us
“And if it isn’t – and I think there is plenty of evidence to suggest it’s not – then we should discuss what alternative model we would wish to adopt.”
Janet Finch-Saunders, the Conservatives’ shadow climate change secretary, acknowledged Welsh Water is making improvements, with a £3.5bn investment programme over five years.
But she criticised the company’s “not strong enough” commitment to a 24% reduction in pollution by 2030 to 69 incidents or less, saying one pollution incident is too many.
Delyth Jewell, her Plaid Cymru counterpart, stressed the importance of balancing the needs of customers during a cost-of-living crisis with the need to invest in infrastructure.
She said: “The investment by Welsh Water, which is vital, will lead to higher bills and these bills are already among the highest in the sector.”
Plaid Cymru’s deputy leader also raised concerns about bonus payments for senior staff at Welsh Water at a time when customers are expected to pay such high bills.
Responding to the debate, Huw IrrancaDavies, the newly-appointed climate change secretary, said the latest performance reports paint a mixed picture.
But Mr Irranca-Davies, a member of the committee during the inquiry, warned Welsh Water has a long way to go to meet the challenges of the climate and nature emergencies.
The former MP said: “Improving the performance and delivering for the people of Wales is a top priority.”