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 made an assessment of the potential merits of expanding consumer choice in the water market for homeowners by offering alternative providers.

Given their inherent nature, many parts of the water and wastewater value chain are subject to natural monopolies where there is limited scope for competition in the market – meaning there is a risk companies will not deliver the services their customers want or charge higher prices to increase their profits.

As monopoly service providers, it is important that water companies are held to account on poor performance and drive improvements that benefit customers and the environment. Ofwat, as the independent regulator, has the statutory duty to hold water companies to account for the delivery of affordable, secure, and resilient water services; protecting the interests of consumers whilst ensuring the companies properly carry out and finance their statutory functions.

Furthermore, the Independent Water Commission, led by Sir Jon Cunliffe, was launched in October 2024 by the UK and Welsh Governments to recommend reforms to reset the water sector regulatory system. On 27 February, the Commission launched a wide-ranging Call for Evidence which is open for views from all interested parties until 23 April. The Call for Evidence covers many areas, including consumer protection, the environment and public health. The Commission will make its final recommendations to both UK and Welsh Governments this summer.