Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what information her Department holds on how Ofwat calculates the cap on which water companies can increase water bills for customers.

Ofwat published methodology for calculating the price controls that cap water bill increases. Ofwat sets these caps independently through its five‑year price review, assessing companies’ plans and the efficient costs needed to meet Government‑set service and environmental expectations. Money approved for infrastructure can only be spent on upgrades that benefit customers and the environment, and cannot be diverted to bonuses, dividends or executive pay, with requirements for companies to return money to customers if they fail to meet performance commitments. The Government has also secured £104 billion of private investment through Price Review 2024, the largest investment programme in the history of the water sector.