Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, if he will take steps with Ofwat to place Thames Water in special administration.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The Government and Ofwat – the financial regulator for the water sector – are carefully monitoring the situation, and Ofwat continues to engage with Thames Water.
The company remains stable, and it would be inappropriate to comment in detail on hypotheticals – however it is important to provide reassurance that the Government is prepared for all scenarios across all our regulated industries – as any government should be.
Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, whether it is his policy that water companies in breach of their operating licence are able to continue to operate with no material sanction.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
Ofwat, as the independent economic regulator, carries out its work in the manner it considers best meets its duties, including its duty to secure that water companies properly carry out their functions.
Where companies have failed to meet statutory or licence obligations, Ofwat is responsible for enforcing. Ofwat have the power to take action through an enforcement order or financial penalty (up to 10% of a company’s relevant annual turnover).
The ultimate enforcement tool is an application for special administration. The Secretary of State, or Ofwat with the consent of the Secretary of State can apply to the High Court for a special administration order. The High Court can only make a special administration order in certain circumstances, including where it is satisfied that:
Asked by: Charlie Maynard (Liberal Democrat - Witney)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, if he will appoint a special administrator for Thames Water; and if he will make an assessment of the potential impact of the decision by Moody's to downgrade Thames Water's credit rating to junk status on its licence obligations.
Answered by Emma Hardy - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The company remains stable and we are closely monitoring the situation.
It would be irresponsible to comment on hypotheticals.