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

To ask His Majesty's Government what steps they are taking to protect consumers where water companies are facing financial difficulties.

Ofwat independently monitors the financial position of water companies and acts when companies need to strengthen their long-term financial resilience. Ofwat expect water companies to maintain a level of financial headroom to manage short term volatility and shocks to their financial structures and meet their obligations and commitments.

We are clear consumers must be protected. Ofwat has strengthened its powers to improve financial resilience, including stopping water companies paying dividends where financial resilience is at risk.

Our Water (Special Measures) Bill will put water companies under tough special measures, by strengthening regulation as a first legislative step towards improving the sector.