PAC trains focus on water sector regulation as work of Ofwat scrutinised
The Public Accounts Committee (PAC) will hold a scrutiny session on the work of water regulator Ofwat.
Meeting details
The PAC’s 2025 inquiry into water sector regulation found that a failing sector had been left to flounder, with piecemeal regulators apparently missing in action. Since the publication of the PAC’s report, government has announced the abolition of Ofwat and the establishment of a new integrated water regulator, and published its white paper setting out its action plan for water. The Committee’s session will see government quizzed on how its work is progressing.
The session will also likely see an examination of the current state of the water sector, with the PAC and National Audit Office (NAO) having established existing challenges including a loss of trust amongst consumers, a likely significant water shortage by 2050, and environmental damage. With an estimated £290bn in infrastructure and £50bn in water supply investment required over the next 25 years, evidence will be sought from Ofwat on what has been done to tackle these problems.
Another likely topic is the financial resilience of the sector itself, as Ofwat is currently concerned about the outlook for 10 out of the 16 water companies, and investor confidence. Further potential questions are also likely on what is being done to make sure bill rises can be transparently explained to customers, and what Storm Goretti has revealed about the current state of the sector.