Regulation Authority, or Ofwat, whose predecessors were established when the industry was privatised.19 Ofwat is a non-ministerial Government department that is financed by licence fees from water companies.20 Ofwat’s duties originate from the Water Industry Act 1991 and include promoting competition, protecting the interests of consumers and Ofwat is currently scrutinising company proposals. Evidence from the National Infrastructure Commission suggests that strategic transfers could provide around double the capacity they supply currently. The Environment, Food and Rural Affairs Committee published its Eighth Report of Session 2017–19, Regulation of the Water Industry (HC 1041), on 9 October 2018. We are pleased that Ofwat have taken a proactive approach to this through their Putting the Sector Back in Balance7 package. Ofwat says opening competition in water industry would generate £2.9bn, Extra 20% off Sale items with this ASOS discount code, 5% off Travelodge discount when you sign up for the newsletter, Eve Sleep sale: save up to 50% on selected items, Up to 40% off selected restaurants at Just Eat, Take 30% off new-in fashion with our boohoo discount code, Take up to 20% off local deals by using this Groupon discount code, CDKeys Sale! The government has always felt it is important for micro and small business customers to benefit from the business retail market. The government endorses the water industry’s commitment to halve leakage by 2050. 0000002806 00000 n The regulator says they can ‘do better’ – and they can, writes James Moore, Companies commit to produce net zero carbon emissions by 2030. 0000005279 00000 n These will facilitate a more comprehensive assessment of drainage, sewer and treatment work capacity and the risk of these assets to the environment, including the use of CSOs. The last classification was in 2013, and there are currently seven water company areas designated as facing serious water stress and four of those companies have chosen to roll out universal metering. In these plans, water companies set out proposals to meet their supply and demand balance requirements for at least the next 25 years. 868 0 obj <> endobj Yes / No 3. 11.We recommend that the Government commissions an independent review of whether the water industry and regulation are fit to meet future needs such as drought resilience, as well as delivering value for money for customers. <<28E63C2DD065E448B7FB8E1BBE74FAB5>]>> 2.The Government and Ofwat should make a strategic assessment of the need for water transfer infrastructure and confirm a long-term target for water transfers. Ofwat always expected efficiency to be something suppliers would be keen to offer, and they will explore the reasons for this not being the case. Our report to Parliament in 2019 will review the progress that has been made so far. To support the government’s commitment in the 25 Year Environment Plan and as set out in the government’s water conservation report, we will launch a call for evidence on setting an ambitious target for per capita consumption (PCC). The Environment, Food and Rural Affairs Committee published its Eighth Report of Session 2017–19, Regulation of the Water Industry (HC 1041), on 9 October 2018. Any non-compliance will be subject to appropriate action by the Environment Agency under enforcement and sanctions guidance. Ofwat have identified a number of factors which influence engagement with the market. Alongside the PCC call for evidence we will hold a consultation to examine the policy options required to support the target. A strong, independent regulator will be needed in England and Wales in the future, under all circumstances. 1 Base costs represent operating expenditure and capital maintenance expenditure. Ofwat’s regulatory approach to markets should seek to ensure that there is a level playing field between new entrants and existing undertakers. Ofwat’s December 2015 consultation9 into the regulatory framework for the 2019 price review concluded that the five-year price review cycle should be maintained. Ofwat, together with the other water regulators, will explore economic, regulatory and commercial barriers to trading ahead of the next round of water resources management planning. In their draft business plans most companies are setting themselves targets to extend the reach of the support they offer to customers. 0000005518 00000 n 0000002853 00000 n Today’s publication, Moving forward together, brings together these scorecards from … We agree that all eligible customers should be able to take advantage of the benefits that a choice of supplier can bring, and want to see more SME customers engaging with the market. In their draft Water Resource Management Plans (WRMPs) companies set more ambitious PCC targets than ever before, with an average PCC of 123 litres per person per day (l/p/d) by 2045. 1 https://www.gov.uk/government/publications/water-abstraction-plan-2017, 2 https://www.gov.uk/government/consultations/draft-national-policy-statement-for-water-resources-infrastructure, 3 https://www.ofwat.gov.uk/publication/building-resilient-water-supplies-joint-letter-defra-environment-agency-drinking-water-inspectorate-ofwat-water-companies/, 4 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/661803/sps-ofwat-2017.pdf, 5 https://www.thewaterreport.co.uk/single-post/2018/10/21/Water-UK-pledges-to-halve-leaks-by-2050-but-wants-policy-support-to-cut-demand, 6 https://www.ccwater.org.uk/wp-content/uploads/2018/09/Household-Complaints-to-water-companies-in-England-and-Wales-2017–18.pdf, 7 https://www.ofwat.gov.uk/publication/putting-sector-back-balance-summary-ofwats-decision-issues-pr19-business-plans/, 8 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/700648/water-companies-letter-SofS-to-Ofwat-180418.PDF, 9 https://www.ofwat.gov.uk/wp-content/uploads/2015/12/pap_pos20150520w2020.pdf.
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