Water Companies: Customer Bills

Baroness Hayman of Ullock Excerpts

Tuesday 23rd May 2023 Lords Chamber

[Lord Benyon (Con)]

My noble friend makes a very good point. Water is the only utility business where the regulator does link reward for company executives and dividend payments to performance. It is the only sector of privatised utilities where that link is made.

[Baroness Hayman of Ullock (Lab)]

My Lords, while we are on soundbites, can I just say that I think levelling up is a bit of a soundbite rather than a solution? The National Infrastructure Commission has warned that

“there does not appear to be a comprehensive and consistent understanding of asset condition across the sector and how this may change in the future”.

We know that asset replacement rates need to be significantly higher, so does the Minister agree with the commission that Ofwat should take a leadership role in developing consistent, forward-looking metrics for defining and measuring asset health across England? If not, what does he consider to be the alternative to achieve this?

[Lord Benyon (Con)]

I do not agree that levelling up is a soundbite—it is really happening. I do agree that we need to make sure that we are supporting water companies and, through the regulator, making sure that they are taking a longer-term view on this. Each price round is five years, and the investment decisions we want them to take look way into the future, ahead of that. We want to make sure that we are working with the industry to create a long-term solution and that we are doing that with customers in mind. Some of the promises being bandied around about ending all sewage outflows by 2030, and those making them, really need to be challenged, because that will have a very big impact on households that are struggling to pay other bills at the moment.