Thames Water

Duke of Wellington Excerpts

Wednesday 4th June 2025 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I am sure that the other regulated industries are watching what is happening in the water industry with great interest. It is important that where our industries are regulated, they are regulated properly, appropriately and for the benefit of the country and consumers. It will be interesting to see the outcomes of the Cunliffe report, particularly regarding Ofwat, the Environment Agency and some of the people who have been responsible for the hands-on regulation. We have some important and interesting decisions to make as we go forward.

[The Duke of Wellington (CB)]

My Lords, does the Minister agree that—as many people have said already—the root of the problem at Thames is the level of debt? The fact is that, many years ago, Ofwat allowed Thames Water to increase the level of its own debt beyond any reasonableness. The public have been let down as much by the regulator as by the water companies. I very much hope that the Minister will agree that we need to change the type of regulation that the water companies have to live by.

[Baroness Hayman of Ullock (Lab)]

The noble Duke makes an extremely important point. The Cunliffe report is pretty damning on how the regulators have overseen what has happened. Clearly, it has not been good that water companies, particularly Thames, have been allowed to get into so much debt. We will absolutely be considering these matters very seriously.