Water Companies: Financial Resilience

Debate between Baroness Hayman of Ullock and Lord Whitty

Tuesday 23rd July 2024 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

At the moment we are working closely with the regulators, including Ofwat, to ensure that they are fit for purpose and can deliver what is needed in the sector.

[Lord Whitty (Lab)]

My Lords, further to the question of the noble Earl, Lord Attlee, I speak as a former non-executive director of Ofwat for a few months, and as a former non-executive director of the Environment Agency for a few years. Ofwat was always feeble. The Environment Agency has been rendered feeble by a cut in resources and asking the companies to report on their own homework. What is needed is a new and powerful single regulator for the water sector. Do the Government have plans, at least in the medium term, to move to that?

[Baroness Hayman of Ullock (Lab)]

My Lords, we are working with Ofwat and the water companies to deliver change as quickly as possible. As I mentioned, the first thing we are doing is bringing in the water special measures Bill to try to change the culture within the water companies. We will work on another water Bill that will come forward, and I look forward to working with all noble Lords, including my noble friends, on what that could contain in order to make the biggest difference to the current situation.