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Ofwat Strategic Policy Statement

Ofwat's regulatory approach to water companies is being shaped through a Strategic Policy Statement issued by the Department for Environment, Food and Rural Affairs. The statement sets out government priorities for water regulation, including equality considerations and alignment with broader environmental policy. This is an active policy area with recent parliamentary scrutiny and cross-departmental coordination with other environmental regulators.

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2026

7 events
28 Apr 2026 | Written question Department for Environment, Food & Rural Affairs linked

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment her Department has made of the effectiveness of the water industry regulatory framework in providing flexibility

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment her Department has made of the effectiveness of the water industry regulatory framework in providing flexibility to enable water and wastewater companies to respond to

▤ View document · ↗ GOV.UK
28 Apr 2026 | Written question Department for Environment, Food & Rural Affairs linked

To ask the Secretary of State for Environment, Food and Rural Affairs, what discussions she has had with Ofwat on ensuring that future price review processes consider strategic developments including

To ask the Secretary of State for Environment, Food and Rural Affairs, what discussions she has had with Ofwat on ensuring that future price review processes consider strategic developments including new towns such as Tempsford.

▤ View document · ↗ GOV.UK
28 Apr 2026 | Written question Department for Environment, Food & Rural Affairs linked

To ask the Secretary of State for Environment, Food and Rural Affairs, pursuant to the answer of 2 February 2026 to Question 107385 on Ofwat: Equality, whether Ofwat intends to amend its policy approa

To ask the Secretary of State for Environment, Food and Rural Affairs, pursuant to the answer of 2 February 2026 to Question 107385 on Ofwat: Equality, whether Ofwat intends to amend its policy approach; and if she will ask Ofwat …

▤ View document · ↗ GOV.UK
27 Apr 2026 | Written question Department for Environment, Food & Rural Affairs linked

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the potential implications for its designation as a best-value solution of the increasing cost es

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the potential implications for its designation as a best-value solution of the increasing cost estimates for the Hampshire Water Transfer and Water …

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27 Apr 2026 | Written question Department for Environment, Food & Rural Affairs linked

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the adequacy of Southern Water’s appraisal of alternative water resource options in its draft Wat

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the adequacy of Southern Water’s appraisal of alternative water resource options in its draft Water Resources Management Plan 2024, following the plan’s

▤ View document · ↗ GOV.UK

2025

9 events
18 Jul 2025 | Committee report linked

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 …

▤ View document · ↗ GOV.UK
18 Jul 2025 | Committee report linked

An independent Commission, headed by Sir Jon Cunliffe, is currently reviewing the water sector regulatory system.91 Defra told us that recognised that the sector needed a “fundamental reset”. Defra told us that the Commission was asked to cover areas including the regulatory system structure for planning as well as strategic planning, what the 84 Qq 80-82 85 C&AG’s Report, para 2.4 86 Q 83 87 Qq 84-85 88 Q 49 89 Qq 17-18 90 Q 9 91 C&AG’s Report, para 7 18 legislative framework looks like, and...

An independent Commission, headed by Sir Jon Cunliffe, is currently reviewing the water sector regulatory system.91 Defra told us that recognised that the sector needed a “fundamental reset”. Defra told us that the Commission was asked to cover areas including …

▤ View document · ↗ GOV.UK
18 Jul 2025 | Committee report linked

Defra told us that the Commission’s interim report says that the sector needs a reset in its strategic planning, legislative framework, regulatory framework, water company structures, governance, assets and resilience.94 Defra told us that it fully accepted the contents of the interim report, and had big changes to make.95 In 2024, Moody’s cited the uncertainty associated with the government review of the sector as one of the reasons it downgraded the credit-worthiness of the whole sector.96

Defra told us that the Commission’s interim report says that the sector needs a reset in its strategic planning, legislative framework, regulatory framework, water company structures, governance, assets and resilience.94 Defra told us that it fully accepted the contents of …

▤ View document · ↗ GOV.UK
16 Jun 2025 | Committee report linked

Different models of ownership could offer a better culture of responsible leadership, which is key to a thriving water sector. A variety of corporate ownership options should be on the table for the water sector. As well as the publicly and privately owned businesses, options include not-for-profit enterprises, Community Interest Companies (or similar), cooperatives and hybrid approaches. Regardless of the approach taken, other factors may also need to be considered, such as powers to vet pot...

Different models of ownership could offer a better culture of responsible leadership, which is key to a thriving water sector. A variety of corporate ownership options should be on the table for the water sector. As well as the publicly …

▤ View document · ↗ GOV.UK
16 Jun 2025 | Committee report linked

The Independent Water Commission should determine new measures to regulate the accumulation and management of debt in the water sector. These measures should allow the economic regulator to intervene when irresponsible debt management is taking place. Any new powers should be tempered by a realistic and consistent understanding of what sustainable debt levels look like. The Commission’s work should help government, water companies and citizens come to an understanding about the most appropria...

The Independent Water Commission should determine new measures to regulate the accumulation and management of debt in the water sector. These measures should allow the economic regulator to intervene when irresponsible debt management is taking place. Any new powers should …

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16 Jun 2025 | Committee report linked

The Independent Water Commission must determine whether equity investment has been value for money for customers. If it is advisable to continue with a totally privatised model, the Commission needs to create a comprehensive but stable regulatory environment for water companies and their investors to ensure that the sector is low risk and low reward. As part of its work looking at narrowing the variability of returns, the Commission should investigate whether there should be a clearer ‘floor’...

The Independent Water Commission must determine whether equity investment has been value for money for customers. If it is advisable to continue with a totally privatised model, the Commission needs to create a comprehensive but stable regulatory environment for water …

▤ View document · ↗ GOV.UK
16 Jun 2025 | Committee report linked

The Independent Water Commission must provide recommendations on improving the special administration regime which, while it should still be a last resort, must ensure that the criteria for its deployment are sufficient for ensuring value for money for customers. (Recommendation, Paragraph 36) The price review process

The Independent Water Commission must provide recommendations on improving the special administration regime which, while it should still be a last resort, must ensure that the criteria for its deployment are sufficient for ensuring value for money for customers. (Recommendation, …

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16 Jun 2025 | Committee report linked

The Independent Water Commission’s proposals should ensure that the price review system is reshaped so that its system of incentives creates a culture of improvement. The price review should contain a comprehensive but straightforward set of performance metrics that matches public expectations and national targets for water. Targets should be stretching but realistic and never set basic expectations. Incentives to meet these targets should reward consistent improvement that is demonstrably at...

The Independent Water Commission’s proposals should ensure that the price review system is reshaped so that its system of incentives creates a culture of improvement. The price review should contain a comprehensive but straightforward set of performance metrics that matches …

▤ View document · ↗ GOV.UK
16 Jun 2025 | Committee report linked

The Independent Water Commission should determine how the price review and regulatory systems can encourage better resilience, both to protect customers from short-term shocks and ensure that water resources are safeguarded in the future. This should begin a process of creating a robust set of resilience standards for the industry, firmly embedded within the price review process or other central regulatory tools. (Recommendation, Paragraph 66) Relationship with consumers

The Independent Water Commission should determine how the price review and regulatory systems can encourage better resilience, both to protect customers from short-term shocks and ensure that water resources are safeguarded in the future. This should begin a process of …

▤ View document · ↗ GOV.UK

2023

1 event
28 Apr 2023 | Committee report linked

Even though we urged the Government to publish its already very delayed Strategy and Policy Statement for Ofgem back in July 2022, it has still not materialised. We recommend that an explicit duty to deliver on the statutory net zero target is added to Ofgem’s remit. We reiterate our previous call for the Government to publish an updated Strategy and Policy Statement for Ofgem which provides a very clear sense of direction to the regulator on how to manage the political and distributional tra...

Even though we urged the Government to publish its already very delayed Strategy and Policy Statement for Ofgem back in July 2022, it has still not materialised. We recommend that an explicit duty to deliver on the statutory net zero …

▤ View document · ↗ GOV.UK

2022

5 events
13 Jan 2022 | Committee report linked

We note with concern the evidence we have received which suggests that Environment Agency sampling practice at wastewater treatment works may not adequately take into account regular variations in the composition of effluent. (Paragraph 171) Water quality in rivers 123

We note with concern the evidence we have received which suggests that Environment Agency sampling practice at wastewater treatment works may not adequately take into account regular variations in the composition of effluent. (Paragraph 171) Water quality in rivers 123 …

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13 Jan 2022 | Committee report linked

Ofwat’s regulatory approach to date appears to have placed insufficient emphasis on facilitating the investment necessary to ensure that the sewerage system in England is fit for the challenges of the 21st century, and able to cope with housing growth and the impact of climate change while restoring good ecological health to rivers. Investment must be accelerated so that damaging discharges from wastewater treatment assets, including storm overflows, cease and that any spills occur only in ge...

Ofwat’s regulatory approach to date appears to have placed insufficient emphasis on facilitating the investment necessary to ensure that the sewerage system in England is fit for the challenges of the 21st century, and able to cope with housing growth …

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13 Jan 2022 | Committee report linked

The Secretary of State has the opportunity to set strategic direction for Ofwat. Now is the time for the Government to act in encouraging Ofwat to increase materially the proportion of each company’s capital investment devoted to improving water quality.

The Secretary of State has the opportunity to set strategic direction for Ofwat. Now is the time for the Government to act in encouraging Ofwat to increase materially the proportion of each company’s capital investment devoted to improving water quality. …

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13 Jan 2022 | Committee report linked

We intend to invite the regulator to appear before this Committee routinely to discuss Ofwat’s progress against the objectives of the new Strategic Policy Statement for the regulator which is shortly to be published by Ministers.

We intend to invite the regulator to appear before this Committee routinely to discuss Ofwat’s progress against the objectives of the new Strategic Policy Statement for the regulator which is shortly to be published by Ministers. Type: conclusion | Number: …

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2018

1 event