Reform history
Water (Special Measures) Act 2025
4 versions
· 2025-02-24
2025-09-01
Water (Special Measures) Act 2025
2025-06-23
Water (Special Measures) Act 2025
2025-04-24
Water (Special Measures) Act 2025
Changes on 2025-04-24
@@ -82,7 +82,7 @@
- (4) Rules issued for the purposes of section 35B(2)(a) of the [Water Industry Act 1991](https://www.legislation.gov.uk/ukpga/1991/56) (as inserted by subsection (3)) may make provision about performance-related pay in respect of the financial year beginning 1 April 2024 (and subsequent financial years).
- (5) The first rules under section [35B](#p00189) of the Water Industry Act 1991 (inserted by subsection [(3)](https://www.legislation.gov.uk/ukpga/2025/5/section/1/3/enacted)) may not be issued unless—
- (5) The first rules under section [35B](#p00189) of the Water Industry Act 1991 (inserted by subsection [(3)](https://www.legislation.gov.uk/ukpga/2025/5/section/1/3/2025-04-24)) may not be issued unless—
- (a) the rules have been provided in draft to the Secretary of State, and
@@ -92,7 +92,7 @@
##### 2
In the Water Industry Act 1991, after section 35D (inserted by section [1](https://www.legislation.gov.uk/ukpga/2025/5/section/1/enacted)) insert—
In the Water Industry Act 1991, after section 35D (inserted by section [1](https://www.legislation.gov.uk/ukpga/2025/5/section/1/2025-04-24)) insert—
> (35E)
> (1) The purpose of this section is that members of the public should have easy access to a concise, intelligible and up-to-date overview of the financial position of each relevant undertaker.
@@ -271,15 +271,15 @@
> (a) on summary conviction, to imprisonment for a term not exceeding the general limit in a magistrates’ court or to a fine, or both;
> (b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.
- (3) The amendments made by [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/6/enacted) have effect only in relation to offences committed on or after the day on which [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/6/enacted) comes into force.
- (3) The amendments made by [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/6/2025-04-24) have effect only in relation to offences committed on or after the day on which [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/6/2025-04-24) comes into force.
#### Civil penalties: modification of standard of proof
##### 7
- (1) [This section](https://www.legislation.gov.uk/ukpga/2025/5/section/7/enacted) is about the powers to provide for fixed monetary penalties or variable monetary penalties conferred by sections 36 and 62 of the [Regulatory Enforcement and Sanctions Act 2008](https://www.legislation.gov.uk/ukpga/2008/13) (“*the 2008 Act*”).
- (2) In relation to an offence within [subsection (3)](https://www.legislation.gov.uk/ukpga/2025/5/section/7/3/enacted) that is committed by a water company, the powers may be exercised as if “on the balance of probabilities” appeared instead of “beyond reasonable doubt” in sections 39(2) and 42(2) of [the 2008 Act](https://www.legislation.gov.uk/ukpga/2008/13).
- (1) [This section](https://www.legislation.gov.uk/ukpga/2025/5/section/7/2025-04-24) is about the powers to provide for fixed monetary penalties or variable monetary penalties conferred by sections 36 and 62 of the [Regulatory Enforcement and Sanctions Act 2008](https://www.legislation.gov.uk/ukpga/2008/13) (“*the 2008 Act*”).
- (2) In relation to an offence within [subsection (3)](https://www.legislation.gov.uk/ukpga/2025/5/section/7/3/2025-04-24) that is committed by a water company, the powers may be exercised as if “on the balance of probabilities” appeared instead of “beyond reasonable doubt” in sections 39(2) and 42(2) of [the 2008 Act](https://www.legislation.gov.uk/ukpga/2008/13).
- (3) The offences are those under—
@@ -299,9 +299,9 @@
- (c) regulations under section 61 of the [Water Act 2014](https://www.legislation.gov.uk/ukpga/2014/21) (regulation of water resources etc).
- (4) An order that provides for variable monetary penalties in reliance on [subsection (2)](https://www.legislation.gov.uk/ukpga/2025/5/section/7/2/enacted) must provide for the amount of those penalties not to exceed an amount specified in the order.
- (5) In [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/7/enacted), “*water company*” means—
- (4) An order that provides for variable monetary penalties in reliance on [subsection (2)](https://www.legislation.gov.uk/ukpga/2025/5/section/7/2/2025-04-24) must provide for the amount of those penalties not to exceed an amount specified in the order.
- (5) In [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/7/2025-04-24), “*water company*” means—
- (a) a water undertaker or sewerage undertaker, or
@@ -313,13 +313,13 @@
##### 8
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/enacted) applies if the Environment Agency or the Natural Resources Body for Wales (“the relevant agency”) is satisfied that it has the power to impose a fixed monetary penalty on a water company in respect of a specified offence committed by the company.
- (1) [Subsection (2)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/2025-04-24) applies if the Environment Agency or the Natural Resources Body for Wales (“the relevant agency”) is satisfied that it has the power to impose a fixed monetary penalty on a water company in respect of a specified offence committed by the company.
- (2) The relevant agency must impose the penalty unless—
- (a) the relevant agency considers that there are exceptional circumstances that mitigate the culpability of the company, or
- (b) alternative enforcement action (see [subsection (6)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/6/enacted)) is in contemplation or in progress.
- (b) alternative enforcement action (see [subsection (6)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/6/2025-04-24)) is in contemplation or in progress.
- (3) A “specified offence” is an offence specified in regulations made by statutory instrument by—
@@ -327,27 +327,27 @@
- (b) the Welsh Ministers, in relation to the duty of the Natural Resources Body for Wales.
- (4) The only offences that may be specified are those within [section 7](https://www.legislation.gov.uk/ukpga/2025/5/section/7/enacted)[(3)](https://www.legislation.gov.uk/ukpga/2025/5/section/7/3/enacted) (offences to do with pollution control, abstraction, impounding, drought etc).
- (4) The only offences that may be specified are those within [section 7](https://www.legislation.gov.uk/ukpga/2025/5/section/7/2025-04-24)[(3)](https://www.legislation.gov.uk/ukpga/2025/5/section/7/3/2025-04-24) (offences to do with pollution control, abstraction, impounding, drought etc).
- (5) The specification of such an offence may be limited to cases of a particular description.
- (6) In [subsection (2)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/enacted)[(b)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/b/enacted), “*alternative enforcement action*” means—
- (6) In [subsection (2)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/2025-04-24)[(b)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/b/2025-04-24), “*alternative enforcement action*” means—
- (a) criminal proceedings, or
- (b) the imposition of a variable monetary penalty.
- (7) Regulations made under or by virtue of Part 3 of [the 2008 Act](https://www.legislation.gov.uk/ukpga/2008/13) may provide for the grounds of appeal referred to in section 40(6)(c) of [that Act](https://www.legislation.gov.uk/ukpga/2008/13) not to extend to the relevant agency’s decision to impose a fixed monetary penalty so far as that decision concerns the application of [subsection (2)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/enacted)[(a)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/a/enacted).
- (8) The procedure required by section 40 of [the 2008 Act](https://www.legislation.gov.uk/ukpga/2008/13) (procedure for imposing fixed monetary penalties) is otherwise to be followed, in respect of a penalty proposed or imposed further to the duty in [subsection (2)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/enacted), in a way that is consistent with that duty.
- (9) A statutory instrument containing regulations under [subsection (3)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/3/enacted) may not be made unless a draft of the instrument has been laid before and approved by a resolution of—
- (7) Regulations made under or by virtue of Part 3 of [the 2008 Act](https://www.legislation.gov.uk/ukpga/2008/13) may provide for the grounds of appeal referred to in section 40(6)(c) of [that Act](https://www.legislation.gov.uk/ukpga/2008/13) not to extend to the relevant agency’s decision to impose a fixed monetary penalty so far as that decision concerns the application of [subsection (2)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/2025-04-24)[(a)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/a/2025-04-24).
- (8) The procedure required by section 40 of [the 2008 Act](https://www.legislation.gov.uk/ukpga/2008/13) (procedure for imposing fixed monetary penalties) is otherwise to be followed, in respect of a penalty proposed or imposed further to the duty in [subsection (2)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2/2025-04-24), in a way that is consistent with that duty.
- (9) A statutory instrument containing regulations under [subsection (3)](https://www.legislation.gov.uk/ukpga/2025/5/section/8/3/2025-04-24) may not be made unless a draft of the instrument has been laid before and approved by a resolution of—
- (a) both Houses of Parliament, in the case of regulations made by the Secretary of State;
- (b) Senedd Cymru, in the case of regulations made by the Welsh Ministers.
- (10) In [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/8/enacted)—
- (10) In [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2025-04-24)—
- “*the 2008 Act*” means the [Regulatory Enforcement and Sanctions Act 2008](https://www.legislation.gov.uk/ukpga/2008/13);
@@ -355,9 +355,9 @@
- “*variable monetary penalty*” means a variable monetary penalty so provided for (see section 42 of [the 2008 Act](https://www.legislation.gov.uk/ukpga/2008/13));
- “*water company*” has the meaning given by [section 7](https://www.legislation.gov.uk/ukpga/2025/5/section/7/enacted)[(5)](https://www.legislation.gov.uk/ukpga/2025/5/section/7/5/enacted).
- (11) Section [7](https://www.legislation.gov.uk/ukpga/2025/5/section/7/enacted)[(6)](https://www.legislation.gov.uk/ukpga/2025/5/section/7/6/enacted) also applies for the purposes of this section.
- “*water company*” has the meaning given by [section 7](https://www.legislation.gov.uk/ukpga/2025/5/section/7/2025-04-24)[(5)](https://www.legislation.gov.uk/ukpga/2025/5/section/7/5/2025-04-24).
- (11) Section [7](https://www.legislation.gov.uk/ukpga/2025/5/section/7/2025-04-24)[(6)](https://www.legislation.gov.uk/ukpga/2025/5/section/7/6/2025-04-24) also applies for the purposes of this section.
### Regulation of abstraction and impounding
@@ -452,7 +452,7 @@
##### 13
- (1) The Water Industry Act 1991 is amended as set out in subsections [(2)](https://www.legislation.gov.uk/ukpga/2025/5/section/13/2/enacted) and [(3)](https://www.legislation.gov.uk/ukpga/2025/5/section/13/3/enacted).
- (1) The Water Industry Act 1991 is amended as set out in subsections [(2)](https://www.legislation.gov.uk/ukpga/2025/5/section/13/2/2025-04-24) and [(3)](https://www.legislation.gov.uk/ukpga/2025/5/section/13/3/2025-04-24).
- (2) In section 143A(3)(b), after “regulations” insert “or, in the case of regulations made by the Secretary of State (rather than the Welsh Ministers), by which that entitlement is otherwise to be established”.
@@ -492,7 +492,7 @@
> (a) the regulations only amend earlier regulations, and
> (b) the Secretary of State considers that the amendments are sufficiently minor that consultation is unnecessary.
- (4) The Digital Economy Act 2017 is amended as set out in subsections [(5)](https://www.legislation.gov.uk/ukpga/2025/5/section/13/5/enacted) and [(6)](https://www.legislation.gov.uk/ukpga/2025/5/section/13/6/enacted).
- (4) The Digital Economy Act 2017 is amended as set out in subsections [(5)](https://www.legislation.gov.uk/ukpga/2025/5/section/13/5/2025-04-24) and [(6)](https://www.legislation.gov.uk/ukpga/2025/5/section/13/6/2025-04-24).
- (5) In section 38 (disclosure of information to water and sewerage undertakers)—
@@ -641,67 +641,67 @@
- (2) The following provisions come into force on the day on which this Act is passed—
- (a) [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/17/enacted);
- (b) [section 1](https://www.legislation.gov.uk/ukpga/2025/5/section/1/enacted) (rules about remuneration and governance);
- (c) [section 2](https://www.legislation.gov.uk/ukpga/2025/5/section/2/enacted) (financial transparency requirements);
- (d) [section 7](https://www.legislation.gov.uk/ukpga/2025/5/section/7/enacted) (civil penalties: modification of standard of proof);
- (e) [section 8](https://www.legislation.gov.uk/ukpga/2025/5/section/8/enacted) (automatic penalties for certain offences);
- (f) [section 9](https://www.legislation.gov.uk/ukpga/2025/5/section/9/enacted) (abstraction and impounding: power to impose general conditions);
- (g) [section 11](https://www.legislation.gov.uk/ukpga/2025/5/section/11/enacted) (charges in respect of Environment Agency and NRBW functions);
- (h) [section 12](https://www.legislation.gov.uk/ukpga/2025/5/section/12/enacted) (Drinking Water Inspectorate: functions and fees).
- (a) [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/17/2025-04-24);
- (b) [section 1](https://www.legislation.gov.uk/ukpga/2025/5/section/1/2025-04-24) (rules about remuneration and governance);
- (c) [section 2](https://www.legislation.gov.uk/ukpga/2025/5/section/2/2025-04-24) (financial transparency requirements);
- (d) [section 7](https://www.legislation.gov.uk/ukpga/2025/5/section/7/2025-04-24) (civil penalties: modification of standard of proof);
- (e) [section 8](https://www.legislation.gov.uk/ukpga/2025/5/section/8/2025-04-24) (automatic penalties for certain offences);
- (f) [section 9](https://www.legislation.gov.uk/ukpga/2025/5/section/9/2025-04-24) (abstraction and impounding: power to impose general conditions);
- (g) [section 11](https://www.legislation.gov.uk/ukpga/2025/5/section/11/2025-04-24) (charges in respect of Environment Agency and NRBW functions);
- (h) [section 12](https://www.legislation.gov.uk/ukpga/2025/5/section/12/2025-04-24) (Drinking Water Inspectorate: functions and fees).
- (3) The following provisions come into force on such day as the Secretary of State may by regulations appoint—
- (a) [section 3](https://www.legislation.gov.uk/ukpga/2025/5/section/3/enacted) (pollution incident reduction plans), so far as relating to undertakers whose areas are wholly or mainly in England;
- (b) [section 4](https://www.legislation.gov.uk/ukpga/2025/5/section/4/enacted) (emergency overflows), so far as relating to undertakers whose areas are wholly or mainly in England;
- (c) [section 5](https://www.legislation.gov.uk/ukpga/2025/5/section/5/enacted) (nature-based solutions), so far as relating to undertakers whose areas are wholly or mainly in England;
- (d) [section 10](https://www.legislation.gov.uk/ukpga/2025/5/section/10/enacted) (requirement for Ofwat to have regard to climate change etc), so far as relating to powers or duties exercised or performed in relation to appointment areas (within the meaning of the subsection [(4B)](#p01501) inserted by the section) wholly or mainly in England.
- (a) [section 3](https://www.legislation.gov.uk/ukpga/2025/5/section/3/2025-04-24) (pollution incident reduction plans), so far as relating to undertakers whose areas are wholly or mainly in England;
- (b) [section 4](https://www.legislation.gov.uk/ukpga/2025/5/section/4/2025-04-24) (emergency overflows), so far as relating to undertakers whose areas are wholly or mainly in England;
- (c) [section 5](https://www.legislation.gov.uk/ukpga/2025/5/section/5/2025-04-24) (nature-based solutions), so far as relating to undertakers whose areas are wholly or mainly in England;
- (d) [section 10](https://www.legislation.gov.uk/ukpga/2025/5/section/10/2025-04-24) (requirement for Ofwat to have regard to climate change etc), so far as relating to powers or duties exercised or performed in relation to appointment areas (within the meaning of the subsection [(4B)](#p01501) inserted by the section) wholly or mainly in England.
- (4) The following provisions come into force on such day as the Welsh Ministers may by regulations appoint—
- (a) [section 3](https://www.legislation.gov.uk/ukpga/2025/5/section/3/enacted) (pollution incident reduction plans), so far as relating to undertakers whose areas are wholly or mainly in Wales;
- (b) [section 4](https://www.legislation.gov.uk/ukpga/2025/5/section/4/enacted) (emergency overflows), so far as relating to undertakers whose areas are wholly or mainly in Wales;
- (c) [section 5](https://www.legislation.gov.uk/ukpga/2025/5/section/5/enacted) (nature-based solutions), so far as relating to undertakers whose areas are wholly or mainly in Wales;
- (d) [section 10](https://www.legislation.gov.uk/ukpga/2025/5/section/10/enacted) (requirement for Ofwat to have regard to climate change etc), so far as relating to powers or duties exercised or performed in relation to appointment areas (within the meaning of the subsection [(4B)](#p01501) inserted by the section) wholly or mainly in Wales.
- (a) [section 3](https://www.legislation.gov.uk/ukpga/2025/5/section/3/2025-04-24) (pollution incident reduction plans), so far as relating to undertakers whose areas are wholly or mainly in Wales;
- (b) [section 4](https://www.legislation.gov.uk/ukpga/2025/5/section/4/2025-04-24) (emergency overflows), so far as relating to undertakers whose areas are wholly or mainly in Wales;
- (c) [section 5](https://www.legislation.gov.uk/ukpga/2025/5/section/5/2025-04-24) (nature-based solutions), so far as relating to undertakers whose areas are wholly or mainly in Wales;
- (d) [section 10](https://www.legislation.gov.uk/ukpga/2025/5/section/10/2025-04-24) (requirement for Ofwat to have regard to climate change etc), so far as relating to powers or duties exercised or performed in relation to appointment areas (within the meaning of the subsection [(4B)](#p01501) inserted by the section) wholly or mainly in Wales.
- (5) The following provisions come into force two months after the day on which this Act is passed—
- (a) [section 6](https://www.legislation.gov.uk/ukpga/2025/5/section/6/enacted) (impeding investigations: sentencing and liability);
- (b) [section 13](https://www.legislation.gov.uk/ukpga/2025/5/section/13/enacted) (special provision in charges schemes);
- (c) [section 14](https://www.legislation.gov.uk/ukpga/2025/5/section/14/enacted) (modifications by Secretary of State of water company’s appointment conditions etc to recover losses);
- (d) [section 15](https://www.legislation.gov.uk/ukpga/2025/5/section/15/enacted) (modifications by Welsh Ministers of water company’s appointment conditions etc to recover losses);
- (e) [section 16](https://www.legislation.gov.uk/ukpga/2025/5/section/16/enacted) (winding-up petitions).
- (6) The power to make regulations under [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/17/enacted) includes power to make—
- (a) [section 6](https://www.legislation.gov.uk/ukpga/2025/5/section/6/2025-04-24) (impeding investigations: sentencing and liability);
- (b) [section 13](https://www.legislation.gov.uk/ukpga/2025/5/section/13/2025-04-24) (special provision in charges schemes);
- (c) [section 14](https://www.legislation.gov.uk/ukpga/2025/5/section/14/2025-04-24) (modifications by Secretary of State of water company’s appointment conditions etc to recover losses);
- (d) [section 15](https://www.legislation.gov.uk/ukpga/2025/5/section/15/2025-04-24) (modifications by Welsh Ministers of water company’s appointment conditions etc to recover losses);
- (e) [section 16](https://www.legislation.gov.uk/ukpga/2025/5/section/16/2025-04-24) (winding-up petitions).
- (6) The power to make regulations under [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/17/2025-04-24) includes power to make—
- (a) different provision for different purposes or areas;
- (b) transitional or saving provision.
- (7) In relation to the coming into force of [section 4](https://www.legislation.gov.uk/ukpga/2025/5/section/4/enacted), regulations under [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/17/enacted) may make provision by reference to matters determined by—
- (7) In relation to the coming into force of [section 4](https://www.legislation.gov.uk/ukpga/2025/5/section/4/2025-04-24), regulations under [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/17/2025-04-24) may make provision by reference to matters determined by—
- (a) the Environment Agency, so far as relating to undertakers whose areas are wholly or mainly in England;
- (b) the Natural Resources Body for Wales, so far as relating to undertakers whose areas are wholly or mainly in Wales.
- (8) Regulations under [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/17/enacted) are to be made by statutory instrument.
- (8) Regulations under [this section](https://www.legislation.gov.uk/ukpga/2025/5/section/17/2025-04-24) are to be made by statutory instrument.
- (9) A duty to consult under or by virtue of this Act may be satisfied by consultation that took place wholly or partly before the passing of this Act.
2025-02-24
Water (Special Measures) Act 2025
original version
Text at this date