Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what steps they plan to take to deliver on their commitment in the Net Zero Strategy to enable people to make informed choices about (1) the goods and products they buy, and (2) services they use, through exploring how products could be labelled with their (a) emission intensity, and (b) environmental impact.

Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)

The Government continues to evaluate the use of environmental labelling, with a view to stimulating demand for better quality items and services. This includes exploring the evidence base for environmental labelling within food production and disposal. Further, the Government has committed to introduce mandatory water-efficiency labelling to encourage consumers to buy products which avoid water wastage and reduce energy demand for heating the water. The Government is also exploring the use of labels that inform consumers of the durability, repairability and recyclability of products.

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

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential merits of enabling the use of catchment approaches and nature-based solutions by water companies in delivering their regulated obligations in the forthcoming Strategic Policy Statement to Ofwat.

Answered by Rebecca Pow - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)

The Government is consulting on a draft strategic policy statement for Ofwat. This will set priorities for the economic regulator in the following areas:

• Protecting and enhancing the environment – including supporting delivery of the 25 Year Environment Plan, net zero, nature-based solutions and catchment approaches by water companies,
• Delivering a more resilient water sector; and
• Serving and protecting customers, including those who are vulnerable.

The consultation for the strategic policy statement can be accessed via the link here:

https://www.gov.uk/government/consultations/water-industry-governments-strategic-policy-statement-for-ofwat

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

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the potential merits of mandating Ofwat to incentivise long-term outcomes on (a) net-zero and (b) the delivery of the 25 Year Environment Plan through the forthcoming strategic policy statement.

Answered by Rebecca Pow - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)

The Government is consulting on a draft strategic policy statement for Ofwat. This will set priorities for the economic regulator in the following areas:

• Protecting and enhancing the environment – including supporting delivery of the 25 Year Environment Plan, net zero, nature-based solutions and catchment approaches by water companies,
• Delivering a more resilient water sector; and
• Serving and protecting customers, including those who are vulnerable.

The consultation for the strategic policy statement can be accessed via the link here:

https://www.gov.uk/government/consultations/water-industry-governments-strategic-policy-statement-for-ofwat

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

To ask the Secretary of State for Environment, Food and Rural Affairs, what steps his Department is taking to reconcile (a) low average bills, (b) the need to support vulnerable customers and (c) other short-term deliverables in the water industry with long-term investment needs to deliver on net-zero commitments and environmental objectives.

Answered by Rebecca Pow - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)

(a) Ofwat, the independent economic regulator, is responsible for ensuring that water companies charge fair prices and deliver quality services, through a process called the Price Review.

(b) All water companies offer reduced bills for eligible customers via the WaterSure scheme and social tariffs. Water companies also offer a range of other financial support measures such as payment holidays, bill matching and advice on debt management and water efficiency. Last October, Defra commissioned the Consumer Council for Water (CCW) to review the effectiveness of existing support schemes in water to ensure they are fit for purpose now and in the future. Defra is working with CCW and industry to explore CCW’s recommendations (see Independent Affordability Review | CCW (ccwater.org.uk)) further.

(c) As part of Ofwat's 2019 Price Review process, water companies have set out their investment needs and associated costs up to 2024/2025. The Government has set its future expectations for Ofwat in a new strategic policy statement ( The government's strategic priorities for Ofwat: draft for consultation (defra.gov.uk)) which sets out the significant Government ambitions on the environment and climate change, and how the water industry should contribute to that work.