Water Companies and Sewage: Investment Income

(asked on 9th May 2024) - View Source

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

To ask His Majesty's Government on how many occasions OFWAT has blocked or reduced dividend payments by water and sewage companies.


Answered by
 Portrait
Lord Douglas-Miller
This question was answered on 21st May 2024

The Government is clear the overall performance of the water sector is unacceptable. That is why we have given Ofwat increased powers under the Environment Act to hold companies to account for poor performance and ensure dividends are linked to delivery for customers and the environment.

Furthermore, under the “Cash Lock-Up" licence condition, companies must not make a dividend payment where it would pose a risk to their financial resilience. We are confident Ofwat will not hesitate to act when a company has failed to meet these requirements.

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