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

To ask His Majesty's Government whether they plan to introduce a system to audit water companies in England and Wales.

Water companies are already subject to statutory audit requirements and regulatory assurance. Large water undertakers are required to publish Annual Performance Reports each year, in line with Ofwat’s Regulatory Accounting Guidance. These must be independently audited and are reviewed by Ofwat as a licence requirement.

The Government is also strengthening existing oversight arrangements. Through the Water (Special Measures) Act, Ofwat has been given powers to reinforce governance requirements and is working to align its governance principles more closely with the UK Corporate Governance Code, including in relation to audit and assurance.