Committee hears from environmental campaigners on water quality
The Industry and Regulators Committee will continue its inquiry into the work of Ofwat, the economic regulator of the water industry for England and Wales, by hearing from environmental campaigners. The session will discuss the regulator’s powers to tackle poor environmental performance in the water sector, the Government’s guidance to the regulator on the balance between environmental investment and consumer bills, and the relationship between Ofwat and other regulators, including the Environment Agency. The Committee will also consider levels of dividends and executive pay in the water sector and the effectiveness of regulatory enforcement.
Possible questions include:
- Is the Government’s draft Storm Overflows Discharge Reduction Plan sufficient to significantly reduce storm overflows?
- Does Ofwat receive sufficient strategic guidance from the Government on how to balance its objectives, particularly in relation to the tension between long-term investment and customer bills?
- Should Ofwat be doing more to ensure that money in the water sector flows into investment, rather than out into executive pay and dividends?
- Do water companies truly fear the consequences of regulatory interventions, such as fines, or are they seen as a cost of doing business?