Standard content for Members only

To continue reading this article, please login to your Utility Week account, Start 14 day trial or Become a member.

If your organisation already has a corporate membership and you haven’t activated it simply follow the register link below. Check here.

Become a member

Start 14 day trial

Login Register

Lords committee launches inquiry into Ofwat’s powers

The House of Lords Industry and Regulators Committee has launched an inquiry into whether Ofwat is fulfilling its statutory duties and if it has the powers and resources to carry out its objectives.

The committee will also examine specific issues such as sewer overflows and water companies’ financial returns.

Chair of the Committee, Lord Hollick, said: “The committee is keen to examine Ofwat’s performance against its objectives, whether it has the correct powers and strategic direction, and how to measure its performance. The committee will also consider pressing issues within Ofwat’s remit, including sewage overflows and financial returns in the water industry.”

It is inviting written evidence as part of its information gathering from interested stakeholders until 24 June on the following questions:

  • Is Ofwat meeting its statutory objectives?
  • Are Ofwat’s statutory objectives clear and consistent? How can performance against these be measured? How well does Ofwat manage any trade-offs between its objectives?
  • Does Ofwat have the necessary powers to meet its objectives? Does it need greater powers to ensure that water companies reduce sewage overflows?
  • Does Ofwat have the necessary resources to meet its objectives?
  • What are the main challenges facing Ofwat and how well is it meeting them?
  • Does Ofwat receive sufficient strategic guidance from the government on how to balance its objectives?
  • How well does Ofwat work with other regulators and authorities to meet joint challenges and overlapping responsibilities?
  • How satisfactorily does Ofwat take the consumer interest into account?
  • How effective is Ofwat’s price review process?
  • In its engagement with the water industry, does Ofwat strike the right balance between being open to industry input whilst also providing robust regulatory oversight?
  • Does Ofwat sufficiently consider the long term in its regulation? Does Ofwat strike a balance between more visible, short-term issues and long-term considerations?