The Environment Agency has today launched a new consultation on recovering costs for enforcement in full from water companies - following the introduction of the Water (Special Measures) Act 2025, the Agency is now able to recover additional costs associated with regulating the water industry.

This includes the cost of existing and new enforcement activities which were previously funded by government Grant in Aid.
The consultation proposes a new levy to raise on certain water discharge activities and is designed to recover costs associated with the Environment Agency’s enforcement work directly from water companies. The EA is now seeking views on the proposals from the industry, campaigners and members of the public.
Alan Lovell, Chair of the Environment Agency, said:
“The Water (Special Measures) Act was a crucial step in making sure water companies take full responsibility for their impact on the environment.
“The increased regulatory powers introduced by this legislation, including cost recovery for our enforcement work, will allow us to close the justice gap, deliver swifter enforcement action and ultimately deter illegal activity.
“longside these reforms, we are undertaking the biggest ever transformation to the way we regulate the water industry. By investing in people, training and digital assets, we are ensuring water companies better meet the needs of both people and the environment, now and in the future.”
The consultation proposes a new levy to raise on certain water discharge activities and is designed to recover costs associated with the Environment Agency’s enforcement work directly from water companies.
The cost recovery powers are set out under the Water (Special Measures) Act and all activities will be in line with the Environment Agency’s enforcement and sanctions policy.
"Making sure water companies – not regulators – bear cost of enforcement action taken in response to their failings"
Water Minister Emma Hardy commented:
“We promised that polluters would pay for the damage they cause to our waterways.
“That’s why we’re making sure water companies – not regulators – bear the cost of enforcement action taken in response to their failings.
“Through the Water (Special Measures) Act water bosses could face imprisonment for lawbreaking and regulators now have new powers to ban undeserved bonuses and bring automatic and severe penalties against polluters.
“Today’s consultation takes us closer to shaping a water sector that delivers real and lasting improvements for customers and the environment as part of our Plan for Change.”
This week, the Environment Agency also plans to consult on increasing charges for certain services due to rising operational costs,. The consultation will cover changes to charges in the Environmental Permitting and Abstraction Licensing Charging Scheme 2022 and the Waste Charging Scheme 2018.
Deadline to submit comments to the consultation is 26 May - the new charging scheme will be finalised and implemented this summer.
Click here to download the consultation paper
Click here to access the consultation online
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