Water Companies: Fines
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, what discussions he has had with Ofwat on ensuring that any fines placed on water companies are not passed onto customers in the form of higher bills.
Answered by Emma Hardy
The cost burden for water company fines is borne by their shareholders, not by customers.
Ofwat have been clear that when financial penalties are imposed on water companies, customers should not bear the costs and water companies cannot surcharge their customers to recover the funds.
During its first week in office, the Government announced that funding for vital infrastructure investment is ringfenced and can only be spent on upgrades benefiting customers and the environment. Ofwat will ensure that when money for investment is not spent, companies refund customers.
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