Thames Water

Debate between Baroness Hayman of Ullock and Lord Birt

Wednesday 17th June 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

Clearly, we need to see the water Bill to see the detail on that and many other issues that people have a particular interest in. The Government are clear that we do not want to have overburdensome regulation. That is important. The regulator is there to help support the industry and make sure that it works properly for customers and the environment. I am sure that the detail of that will be considered in the Bill, but it is not the Government’s approach to make regulation more difficult for consumers and organisations.

[Lord Birt (CB)]

My Lords, the dire position of Thames Water is, above all, a regulatory failure. Does the Minister accept that Ofwat’s record as a regulator has been absolutely woeful? Above all, it failed to require water companies to invest over a long period of time in appropriate infrastructure of all kinds.

[Baroness Hayman of Ullock (Lab)]

I suggest to the noble Lord that the fact that we are talking about removing Ofwat and bringing in a single, more powerful regulator in the water Bill answers his question. It is not just about who the regulator is but about what the regulator’s priorities are: what is it setting for water companies to achieve? There has not been enough investment in infrastructure, and that has been one of the failures of regulation over the past 20 years.

Thames Water: Bids

Debate between Baroness Hayman of Ullock and Lord Birt

Monday 28th April 2025 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I am afraid I cannot specifically answer that question. I am very happy to go away and look into it for the noble Lord.

[Lord Birt (CB)]

My Lords, I wonder whether the Minister saw the very shocking two-part documentary series on BBC Two about Thames Water, which was made in conjunction with the Open University. If she has seen it, does she agree that the dire position we face on sewage spills is at least to some extent down to severe regulatory failure, the regulator’s focus on the price charged for water and the apparent complete failure to insist on the massive investment needed to upgrade our water and sewerage infrastructure?

[Baroness Hayman of Ullock (Lab)]

I did watch the programmes. I think the straightforward answer to this is that that is why we have Sir Jon Cunliffe carrying out the review, which will look very carefully at the way the water industry has been regulated. One of the things that came across from that programme was the argument that it had been carrying out what Ofwat had asked it to do, which was keep prices low, and because of that there was not sufficient investment. We can look at that in more detail and I am sure that different water companies have interpreted rules from Ofwat in different ways. But the important thing is that we now look very carefully at regulation to make sure that in future it is fit for purpose and we do not end up in situations like we are in at the moment.