18 July 2023 - Follow-up: Ofwat, the water industry and the role of the Government - Oral evidence

The Industry and Regulators Committee will hear from Environment Minister Rebecca Pow MP, as part of  follow-up work on its March 2023 report ‘The affluent and the effluent: cleaning up the failures of water and sewage regulation’. The Committee will consider recent developments in the water sector, including the financial situation at Thames Water, and discuss levels of debt, dividends and investment in water companies. The Committee will also explore the increased investment necessary to ensure future water supplies and improve the sector’s environmental performance, the extent to which this investment will be paid for by companies and their customers through increased bills, and the support available to customers struggling during the cost of living crisis.

Possible questions include:

• Is the Government comfortable with Ofwat’s control of debt levels in the sector? Is it confident that Ofwat’s new licence conditions will prevent water companies entering into financial difficulties?
• What is the Government’s response to the water industry’s apology for sewage discharges? Is the level of investment proposed by the industry likely to be sufficient to achieve the Government’s targets to reduce them?
• To what extent will additional investment in infrastructure need to be funded by increased customer bills? What will the Government do to mitigate bill increases for vulnerable customers?
• Does the Government believe that water companies have the capacity to deliver the scale of investment and projects needed to reduce storm overflow discharges and ensure resilient water supplies?