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

To ask the Secretary of State for Environment, Food and Rural Affairs, whether he has had recent discussions with Ofwat on water companies outsourcing capital programmes to separate companies.

Direct Procurement for Customers (DPC) involves a water or wastewater company competitively tendering for services in relation to the delivery of certain large infrastructure projects, resulting in the selection of a third-party competitively appointed provider.

As part of Ofwat’s Price Review 2024, companies are encouraged to consider the use of DPC approach for discrete projects over £200 million. Outsourcing delivery via DPC has a range of possible benefits, including lower capital and operational costs, lower financing costs, and the provision of benchmarks for efficient costs.

Whether a project is delivered via DPC is a decision for Ofwat.