Water Companies: Duties and Accountability

Debate between Lord Lee of Trafford and Lord Benyon

Monday 4th April 2022 Lords Chamber

[Lord Benyon (Con)]

In the existing price review there is a considerable uplift in investment in water infrastructure. Going forward, through the strategic policy statement and other measures we are imposing, we want to see a dramatic change in the way in which water companies operate, which has allowed a large number of storm overflows to go into our rivers. We all find that reprehensible and we want it stopped.

[Lord Lee of Trafford (LD)]

My Lords, I do not believe that when the earlier Government embarked on the privatisation programme, they ever imagined that so many of our utilities would end up being owned by overseas bodies. Do the Government ever have a dialogue with the overseas owners of some of our water companies, as distinct from with their professional managers or boards?

[Lord Benyon (Con)]

Some years ago, when I was the Minister with responsibility for water and brought in changes to the competition rules, I had exactly that discussion. My colleagues in Defra have frequent discussions with investors of all sorts. However, we have to recognise that overseas sovereign wealth funds and the pension funds that pay our pensions, for example, like the regulated utility sector because it offers a clear yield on their returns. We want that to continue because that is what is paying for this infrastructure improvement.