Thames, Yorkshire and Northumbrian Water: Ofwat Proposed Fines Debate
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Earl of Effingham
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Thames, Yorkshire and Northumbrian Water: Ofwat Proposed Fines
Earl of Effingham Excerpts(2 days, 2 hours ago)
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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.
The Earl of Effingham (Con)
My Lords, at Report stage of the Water (Special Measures) Bill, my noble friend Lord Cromwell successfully secured the overwhelming support of your Lordships’ House for his amendment on financial reporting by water companies. Given that many water companies are overleveraged, it is crucial that we have a laser focus on managing debt in the water sector, and the Government have indeed recognised the importance of water companies’ financial resilience. Can the Minister therefore please explain why the Government have removed my noble friend’s amendment from the Bill in the other place?
Baroness Hayman of Ullock (Lab)
The noble Earl is correct that tackling financial leverage and debt in water companies is important, and it is a priority for this Government. We are currently in discussions with the noble Lord, Lord Cromwell, regarding his amendment.