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

To ask the Secretary of State for Environment, Food and Rural Affairs, what recent discussions he has had with Ofwat on (a) the financial viability of water companies and (b) protections for consumers in the event of insolvency.

Ofwat is an independent regulator that monitors the financial position of water companies, taking action when companies need to strengthen their long-term financial resilience. For example, in March 2023, Ofwat utilised powers provided by the Environment Act 2021 to modify licences to prevent water companies paying dividends where financial resilience is compromised.

In his first week in office, the Secretary of State met water companies’ chief executives, where they signed up to a tough set of initial measures for reform, including on putting customers and the environment at the heart of their businesses. The Secretary of State meets with stakeholders regularly such as Ofwat to discuss a range of issues. Records of these meetings are published on Defra: ministerial overseas travel, and meetings - GOV.UK.