Ofwat told us that it is challenging to understand asset health for a sector where so many of the assets are below ground and can only be measured indirectly.24 Ofwat illustrated this problem when it told us about the challenge of making sure companies replace mains which are in a poor condition.25 But Ofwat currently uses retrospective measures which record asset failure – such as sewer collapses and mains repairs. External commentators, including the Competition and Markets Authority, and t...

Ofwat told us that it is challenging to understand asset health for a sector where so many of the assets are below ground and can only be measured indirectly.24 Ofwat illustrated this problem when it told us about the challenge of making sure companies replace mains which are in a poor condition.25 But Ofwat currently uses retrospective measures which record asset failure – such as sewer collapses and mains repairs. External commentators, including the Competition and Markets Authority, and the National Infrastructure Commission, have called for more forward- looking measures.26 Ofwat is still working on getting standards in place 17 C&AG’s R Type: conclusion | Number: 11 | Response status: not_addressed Government response: Ofwat’s powers include requiring companies to develop and implement long-term asset management plans and taking enforcement action against companies that fail to maintain their assets properly. Ofwat also uses a range of measures to assess asset health, including