Thames, Yorkshire and Northumbrian Water: Ofwat Proposed Fines
Debate between Lord Woodley and Baroness Hayman of Ullock(2 days, 4 hours ago)
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Baroness Hayman of Ullock (Lab)
The advisory board that is going to be working with Sir Jon Cunliffe has been appointed and set up, and my understanding is that the intention is that there will be a first report in the spring of this year.
Lord Woodley (Lab)
In December 2024, Ofwat announced that it would fine Thames Water £18 million for paying unjustified dividends of nearly £38 million; that has now risen to £158 million, according to Ofwat. Can the Minister explain whether the penalty is being enforced and how much of the fine has actually been paid? Does she agree that this is indeed the unacceptable face of capitalism?
Baroness Hayman of Ullock (Lab)
On 19 December last year, Ofwat published its consultation notice, which set out the provisional decision to impose the financial penalty on Thames Water, as my noble friend laid out. As I explained earlier, there is a legal process that Ofwat has to go through. That consultation closed on 16 January—so, very recently—and Ofwat is now looking at those responses.
Water Bills
Debate between Lord Woodley and Baroness Hayman of Ullock(2 months, 1 week ago)
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Lord Woodley
To ask His Majesty’s Government what steps they are taking to reduce water bills for consumers.
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Baroness Hayman of Ullock) (Lab)
My Lords, of course, no one wants to see bills rise. We are committed to tackling water poverty and holding the water sector accountable for its commitment to end water poverty by 2030. We are therefore pushing companies to ensure that sufficient support is available for customers who are struggling to pay their bills, while also challenging Ofwat to make sure that all company investments are affordable and that customers do not pay twice for upgrades.
Lord Woodley (Lab)
My Lords, since privatisation, water companies have had 1,100 criminal convictions and have also paid out over £85 billion in dividends. They charge people for sewage disposal but dump millions of tonnes of sewage into our rivers and seas. This is fraud. Does the Minister agree that rather than hiking bills, these companies should give refunds to customers for making fraudulent charges?
Baroness Hayman of Ullock (Lab)
My noble friend points out some of the disgraceful behaviour we have seen from water companies in recent years. We expect companies to invest their own money going forward. However, we recognise that new investment means that customer bills are likely to rise. It is Ofwat’s responsibility to independently scrutinise water company plans, ensuring that the prices companies charge their customers are fair and proportionate. Vital infrastructure investment funding is ring-fenced and can be spent only on upgrades benefiting customers and the environment. Ofwat must ensure that when money for investment is not spent, companies refund customers, with money never allowed to be diverted for bonuses, dividends or salary increases.