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

To ask the Secretary of State for Environment, Food and Rural Affairs, further to the Answer of 14 September 2026 to Question 27413 on water companies' finances, what regulatory action Ofwat has taken in respect of water companies whose gearing ratio exceeds 70 per cent; and whether Ofwat has used its powers under the Water Industry Act 1991 to intervene in the management of any such company on financial resilience grounds.

Ofwat has used its cash lock-up provisions, which prohibit dividend payments if companies lose their investment-grade credit rating, on Thames Water, Southern Water and South East Water.

As noted in the Water White Paper, we are considering whether further measures are necessary to ensure companies do not accumulate unmanageable levels of debt.