Water Companies: Duties and Accountability

Lord McFall of Alcluith Excerpts

Monday 4th April 2022 Lords Chamber

[Lord Benyon (Con)]

Some years ago, when I was the Minister with responsibility for water and brought in changes to the competition rules, I had exactly that discussion. My colleagues in Defra have frequent discussions with investors of all sorts. However, we have to recognise that overseas sovereign wealth funds and the pension funds that pay our pensions, for example, like the regulated utility sector because it offers a clear yield on their returns. We want that to continue because that is what is paying for this infrastructure improvement.

[The Lord Speaker (Lord McFall of Alcluith)]

My Lords, we have a remote contribution from the noble Lord, Lord Campbell-Savours.

[Lord Campbell-Savours (Lab) [V]]

My Lords, as to duties on flood relief, is the problem not the Environment Agency’s confused remit and influence over water companies’ flood relief expenditure? It conflicts with agency duties and responsibility for environment and habitat protection; you cannot wear both hats. Why not legislate for a new flood relief enforcement authority, separate from the agency, which, under a new community safety remit, has the power to enforce water company expenditure on water company supply-related flood relief water management programmes?