Despite early drought warnings, 2012 became the second wettest year in England since records began in 1910. Furthermore, the Met Office predicts more intense downpours and increased rainfall in the future.
Perpetual rain is an inconvenient blight on summer holiday makers in the UK but it brings with it a largely unseen and serious environmental impact in the form of water pollution. Organisations that fail to manage their environmental obligations properly causing water pollution can be prosecuted under environmental legislation.
Bathing sites failing to meet environmental standards
Data from the Environment Agency (EA) covering 2012 showed a rising number of bathing sites in England failing to meet environmental standards due to an increased amount of pollution being washed from land surfaces and overstretched sewers into rivers and streams.
Recent reports from the EA indicate that serious incidents of pollution in the water sector are also on the increase.
Legal issues with water pollution
Increased flooding and higher levels of water pollution mean it is vital for organisations to assess their risk of exposure to environmental legal issues. It is not just the concern of large utility companies and sewerage treatment works but of local authorities, small businesses and farmers who all face the risk of prosecution. The primary offences are set out in the Environmental Permitting (England and Wales) Regulations 2010 and include causing or knowingly permitting a water discharge activity without an environmental permit. Water discharge activities include:
- Discharging poisonous, noxious or polluting matter or solid waste into freshwater or coastal water
- Discharging trade or sewage effluent into freshwater or coastal water
Many environmental offences such as water pollution impose strict liability. This means the prosecution need only prove the act or omission which forms the offence – there is no need to prove negligence or fault on the part of the defendant. This makes it much easier for regulators to prosecute environmental offences.
Whilst prosecution can have a serious impact on smaller companies or farmers, the effectiveness of low level fines imposed on larger companies are questioned by observers.
Cases in point
Consider United Utilities for example — In December 2012, United Utilities had underlying operating profits of £594.1m but was fined just £14,000 after a significant amount of sewerage was discharged into the River Lune.
In October 2012, Severn Trent, a company boasting a profit in that year of £275.3m, was fined only £20,000 for a similar incident.
Campaigners point out that these fines bear no relation to the huge turnover of the companies and represent a small percentage of expenditure when compared to other business costs such as marketing and salaries.
Water pollution – a cost-benefit analysis
It is likely that the fines imposed on large utility companies cost those companies less than infrastructure upgrades to prevent pollution in the first place. If potential fines for pollution offences are considered by businesses within their calculated risk projections, it could leave a gaping hole in Government and EA efforts to reduce water pollution.
However, there has been no explicit suggestion that utility companies engage in this practice and the EA considers that substantial investment by them has helped improve water quality over the longer term.
Water pollution – the real costs
Although penalties seem inadequate in light of the cases highlighted and the wider cost of water pollution, there is a sting in the tail for would be polluters. The potential penalty for causing or knowingly permitting water pollution is a fine of up to £50,000 in the Magistrates’ Court or up to 12 months’ imprisonment an unlimited fine and/or up to 5 years imprisonment in the Crown Court.
Directors and managers who can be shown to have been involved (i.e. the offence was committed with their consent, connivance or due to their neglect) can be prosecuted in addition to the company. Businesses and managers exposed to these risks should remain aware of their legal responsibilities and obligations towards local communities.
If you need advice creating environmental policies for your business, ensuring compliance with environmental law or you are facing prosecution call 01616 966 229 for more information or complete our enquiry form.