Thames Water: Bids

Lord Birt Excerpts

Monday 28th April 2025 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

I am afraid I cannot specifically answer that question. I am very happy to go away and look into it for the noble Lord.

[Lord Birt (CB)]

My Lords, I wonder whether the Minister saw the very shocking two-part documentary series on BBC Two about Thames Water, which was made in conjunction with the Open University. If she has seen it, does she agree that the dire position we face on sewage spills is at least to some extent down to severe regulatory failure, the regulator’s focus on the price charged for water and the apparent complete failure to insist on the massive investment needed to upgrade our water and sewerage infrastructure?

[Baroness Hayman of Ullock (Lab)]

I did watch the programmes. I think the straightforward answer to this is that that is why we have Sir Jon Cunliffe carrying out the review, which will look very carefully at the way the water industry has been regulated. One of the things that came across from that programme was the argument that it had been carrying out what Ofwat had asked it to do, which was keep prices low, and because of that there was not sufficient investment. We can look at that in more detail and I am sure that different water companies have interpreted rules from Ofwat in different ways. But the important thing is that we now look very carefully at regulation to make sure that in future it is fit for purpose and we do not end up in situations like we are in at the moment.