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A bill to Set targets and objectives relating to water, including in relation to the ownership of water companies and to climate mitigation and adaptation; to require the Secretary of State to publish and implement a strategy for achieving those targets and objectives; to establish a Commission on Water to advise the Secretary of State on that strategy; to make provision about the powers and duties of that Commission, including a requirement to establish a Citizens’ Assembly on water ownership; and for connected purposes.

Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

1 Water: objectives and targets

(1) Section 2 of the Water Industry Act 1991 is amended as follows.
(2) After subsection (1), insert—
(2ZA) The Secretary of State or, as the case may be, the Authority must achieve the following objectives —
(a) securing the conservation, augmentation, distribution and proper use of water resources, and the provision of water supplies;
(b) ensuring that sewage, effluents and waste water entering sewerage systems are subject to secondary treatment before discharge except in circumstances where compliance is not reasonably practicable due to exceptional weather events or emergency conditions;
(c) ensuring that all available means are used to eliminate agricultural, urban, and industrial pollution in water;
(d) the effective implementation of upstream solutions to address pollutants at source to avoid their entry into waterways or water supplies;
(e) the restoration and maintenance of high ecological and chemical status of rivers, lakes, other inland waters, transitional waters and coastal waters, including excellent bathing water status and good shellfish water status;
(f) securing appropriate conditions for the safe use of inland and coastal waters for recreation;
(g) the enhancement and preservation of amenity in connection with inland and coastal waters, with particular regard to biodiversity, ecological resilience, and water quality;
(h) effective monitoring of fresh water nature restoration for the purpose of achieving biodiversity targets; and
(i) the prevention of over-abstraction from rivers and other water bodies.
(2ZB) The Secretary of State or, as the case may be, the Authority must achieve the following objectives and targets in relation to climate mitigation and adaptation—
(a) repairing and preventing water leakages so far as reasonably practicable within a reasonable time and in compliance with regulatory requirements;
(b) preventing undue evaporation of water;
(c) promoting the integration of renewable energy generation into the operations of water undertakers;
(d) measuring, reporting on and reducing greenhouse gas emissions of nitrous oxide and methane from wastewater treatment;
(e) reducing or eliminating leaks resulting from anaerobic digestion at wastewater treatment facilities, with reduction targets set in line with any guidance issued by the Committee on Climate Change;
(f) ensuring that, within four years of the passing of the Water Act 2025, the operations of water undertakers use electricity, vehicles, and heating that do not come from gas, oil or coal, or produce greenhouse gas emissions.
(2ZC) The Secretary of State or, as the case may be, the Authority must achieve the following objectives in respect of the provision of domestic and other water supplies and of drinking water—
(a) that water is affordable for domestic customers, having regard to the United Nations Sustainable Development Goal 6, and that corporations with very high water usage pay proportionately;
(b) that water is universally provided and no person is denied the human right to water, including the provision of free water where appropriate;
(c) that drinking water is wholesome and clean.
(2ZD) The Secretary of State must achieve the following objectives in respect of the ownership and governance of water companies—
(a) representation of trade unions on the boards of water companies;
(b) representation of local authorities on the boards of water companies;
(c) voting rights for—
(i) employees of water companies, and
(ii) customers of water companies
at general meetings of water companies;
(d) effective penalties and enforcement action in cases where water companies fail to meet specified performance standards, and
(e) a prohibition on the transfer of public water companies to private ownership.
(2ZE) The Secretary of State may by regulations impose duties on water undertakers for the purpose of achieving the objectives and targets under subsections (2ZA) and (2ZB).
(2ZF) The objectives and targets in subsections (2ZA) to (2ZD) apply to matters of devolved legislative competence in Wales if the condition in subsection (2ZG) is met.
(2ZG) The condition is that Senedd Cymru has passed a motion of the form “That the Senedd agrees to the objectives and targets in section 2(2ZA) to (2ZD) of the Water Industry Act 1991, inserted by the Water Act 2025”.
(3) At the end of paragraph (2A)(c), insert “unless this could interfere with achieving the objectives and targets in subsections (2ZA) to (2ZD)”.

2 Duty of Secretary of State to publish and implement Water Strategy

(1) Within 18 months of the passing of this Act, the Secretary of State must lay before Parliament a Water Strategy (“the strategy”) for achieving the objectives and targets inserted into the Water Industry Act 1991 by section 1 of this Act.
(2) The strategy must include annual interim targets consistent with the achievement of the objectives and the Secretary of State must take all reasonable steps to meet those annual interim targets.
(3) In preparing the strategy, the Secretary of State must have regard to any advice given by the Commission on Water established under section 3 of this Act and to the recommendations of the Citizens’ Assembly on Water Ownership established under section 4 of this Act.
(4) The strategy must include measures that will achieve the objectives specified in section 1, including by means of—
(a) the adoption by water suppliers of incentives and proportionate pricing structures for agricultural, business, and residential consumers to reduce water consumption and conserve water resources;
(b) the implementation of nature-based solutions within drainage and sewage management plans where appropriate, including the incorporation of peatland restoration for water purification;
(c) the integration of nature-based solutions into water resource management, flood mitigation, and wastewater treatment strategies, including but not limited to peatland and wetland restoration, riparian buffer zones, reforestation and afforestation of catchment areas, regenerative agricultural practices to reduce nutrient runoff, and sustainable urban drainage systems;
(d) the prioritisation of investment in nature-based solutions where it delivers measurable benefits for water quality, biodiversity, and climate resilience, alongside or in place of conventional grey infrastructure;
(e) effective collaboration with local authorities, environmental agencies, civil society organisations, landowners, and other stakeholders to identify and implement projects that enhance the natural water cycle and reduce pollution;
(f) the use of Natural Flood Management techniques where appropriate;
(g) measures to require the Secretary of State and local authorities to take into account the need for water conservation and the availability of adequate water resources when making planning decisions;
(h) measures to require developers involved in Nationally Significant Infrastructure Projects to submit to planning authorities estimates of water usage and proposals for water conservation;
(i) measures to prohibit the transfer of public water companies to private ownership;
(j) measures to provide for the removal of licences from water companies where specified standards are not met;
(k) measures to provide for the automatic expiry of water company licences after two years;
(l) restrictions on returns to shareholders and debt-holders of water companies where specified targets are not met;
(m) measures to provide for the representation of trade unions and local authorities on the boards of water companies; and
(n) measures to provide for voting rights for—
(i) employees of water companies, and
(ii) customers of water companies
at general meetings of water companies.
(5) Measures under paragraph (4)(j) above must include provision requiring the Secretary of State to petition the High Court for special administration of any water company for failures resulting in enforcement action by the Water Services Regulation Authority or the Environment Agency on three or more occasions to—
(a) comply with the terms of its licence,
(b) maintain efficient and economical water supply,
(c) improve mains for the flow of clean water,
(d) provide sewerage systems that are effectually drained,
(e) prevent discharges of untreated sewage outside exceptional circumstances, which shall not normally mean more than 6 per year, according to the Urban Waste Water Treatment (England and Wales) Regulations 1994,
(f) abide by anti-pollution duties in the Environmental Protection Act 1990, the Water Resources Act 1991, or the Environmental Permitting (England and Wales) Regulations 2016, or other relevant measure.
(6) Measures under paragraph (4)(m) above must include provision requiring the board of directors of a company providing drinking water or sewerage services to the public, and any parent or holding company, to have—
(a) at least one-third of its members elected by trade union member employees of the company or group,
(b) at least one-sixth of its members chosen by local authorities in the water catchment area, in consultation with independent environmental and consumer groups.
(7) The Secretary of State must implement the strategy laid before Parliament under this section.
(8) The Secretary of State may from time to time revise the strategy.
(9) Where the Secretary of State revises the strategy under subsection (6), they must—
(a) lay before Parliament a copy of the revised strategy, and
(b) implement the revised strategy.
(10) The strategy may include measures in areas of devolved legislative competence in Wales, subject to the condition in subsection (11).
(11) The condition is that Senedd Cymru has passed a motion of the form “That the Senedd agrees to the measures in the Water Strategy”.

3 Commission on Water

(1) The Secretary of State must by regulations establish a Commission on Water (“the Commission”) to advise the Secretary of State on the preparation and implementation of the Water Strategy.
(2) The Commission established under subsection (1) must have an impartial chair and eight members, who may include—
(a) representatives of water companies,
(b) representatives of trade unions in the water industry,
(c) representatives of environmental or conservation groups,
(d) representatives of water users,
(e) representatives of local authorities, or
(f) financial, industrial, legal or academic experts.
(3) The Commission must in particular advise the Secretary of State on—
(a) models for water ownership and governance, particularly within countries that are members of the Organisation for Economic Cooperation and Development,
(b) measures most likely to be successful in achieving the objectives and targets set out in section 1 of this Act,
(c) measures that represent the best value for money in the long term for the public, including in their payment of bills and taxes, while having regard to public concern for the environment,
(d) measures which will maximise the climate resilience and adaptability of water resources;
(e) water security and the impact of climate change on water access and management.
(4) In advising the Secretary of State, the Commission must have regard to the recommendations of the Citizens’ Assembly on Water Ownership established under section 4 of this Act.

4 Citizens’ Assembly on Water Ownership

(1) Within four months of being established under subsection (3), the Commission on Water must establish a Citizens’ Assembly on Water Ownership (“the Citizens’ Assembly”) to—
(a) consider different models of water ownership, and
(b) make recommendations for reforms to water ownership and governance.
(2) To support the work of the Citizens’ Assembly, the Commission on Water must undertake a public consultation on water ownership in which all individuals who use water and sewerage services in England and Wales can participate.
(3) The Citizens’ Assembly must—
(a) be composed of a randomly selected representative sample of users of water and sewerage services in England and Wales, and
(b) consider any matters which the Commission refers to it in relation to water ownership.
(4) The Commission must publish the recommendations of the Citizens’ Assembly.

5 Financial provisions

There is to be paid out of money provided by Parliament—
(a) any expenditure incurred under or by virtue of this Act, including for the implementation of the strategy; and
(b) any increase attributable to this Act in the sums payable under any other Act out of money so provided.

6 Extent, commencement and short title

(1) This Act extends to England and Wales.
(2) This Act comes into force on the day on which it is passed.
(3) This Act may be cited as the Water Act 2025.