10th December 2024

December 2024

Re: Severn Trent/Panorama

Dear Liv Garfield,

We are disappointed to hear the latest news that Severn Trent Water has used an “accounting trick” (as per BBC reporting) to circumvent requirements to invest in infrastructure to benefit customers and the environment, and instead continue to pay out dividends and bonuses.

While we note the company’s response to the Panorama investigation claiming there has been no wrongdoing, it goes entirely against what the Government and OFWAT are calling for from the industry.

You have claimed that STW is investing record amounts into infrastructure to reduce storm overflows and leaks, however this is not reflected in what we see across our constituencies. Sewage continues to be pumped into waterways and leaks are left unrepaired.

In July, Secretary of State Steve Reed made clear that under this government water companies will be answerable for their performance for customers and the environment and that this aim should be at the heart of your objectives.

The destruction of our waterways and infrastructure has taken place over a long period of time and this government is calling a halt to this. There is much to be done to bring the industry up to a good standard, but by continuing to prioritise dividends and bonuses STW are not playing their part or taking the issue seriously.

In addition to this we note that there has been no movement on the decision to increase consumer bills by 46% over the next 5 years, 6% above the national average. This is particularly surprising given that in your recent business plan for 2025-30, it was stated that Severn Trent was to invest over £12 Billion in the next five years to improve services and performance. We were also told that this would not impact Severn Trent’s position as having the second-lowest bills in the sector.

We are aware that STW are currently under investigation by OFWAT regarding wastewater treatment works and network practices. This is not compatible with your Business Plan for 2025-30, which promised to ensure that your operations were responsible for less than 2% of the harm to rivers in the West Midlands region by 2030.

With the burden on consumers already at record highs, and for the service provided to be under investigation and open to the charge that it is harming the rivers in our constituencies, how you can pass the burden of increased costs on to the consumers while simultaneously handing out bonuses?

The average annual water bill currently stands at £439, under these proposals it will rise to £580.

Whilst water bill increases may be a necessity, for Severn Trent to raise them above the national average is unacceptable.

We call on you to bring forward outstanding and delayed infrastructure projects across the region, especially around small rivers, and be more ambitious with these projects. Colleagues will be happy to raise individual concerns with you to address this. We hope you will also reconsider your request to increase bills before OFWAT make a decision on the 19th of December 2024.

The Government is working with OFWAT to ensure that money is spent on upgrades and not diverted for bonuses. We hope that you will consider refocussing company priorities to meet the needs of customers and the environment and play your part in fixing the foundations of the water industry.

Wish best wishes

Cat

Cat Eccles Member of Parliament for Stourbridge

Dr Allison Gardner Member of Parliament for Stoke on Trent South Alex Ballinger Member of Parliament for Halesowen Shaun Davies Member of Parliament for Telford

Jacob Collier Member of Parliament for Burton and Uttoxeter Jodie Gosling Member of Parliament for Nuneaton

Matt Western Member of Parliament for Warwick and Leamington Chris Bloore Member of Parliament for Redditch David Williams Member of Parliament for Stoke on Trent North Sarah Edwards Member of Parliament for Tamworth

Rachel Taylor Member of Parliament for North Warwickshire and Bedworth Leigh Ingham Member of Parliament for Stafford

Antonia Bance Member of Parliament for Tipton and Wednesbury Sureena Brackenridge Member of Parliament for Wolverhampton North East Sonia Kumar Member of Parliament for Dudley David Robertson Member of Parliament for Lichfield Gareth Snell Member of Parliament for Stoke on Trent Central Warinder Juss Member of Parliament for Wolverhampton West Julia Buckley Member of Parliament for Shrewsbury