Water: Finance
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, with reference to the press notice by Ofwat entitled Ofwat approves £104bn upgrade to accelerate delivery of cleaner rivers and seas and secure long-term drinking water supplies for customers, published 19 December 2024, what discussions his Department has had with Ofwat on its planned timetable for releasing additional funding for the water system.
Answered by Emma Hardy
The Secretary of State has regular discussions with Ofwat on a range of issues, including ensuring companies properly carry out and finance their statutory functions.
The price controls set as part of Price Review 2024 came into effect on 1st April 2025. In their Final Determinations, Ofwat set expenditure allowances which fund companies to meet their statutory and regulatory requirements and deliver their performance commitments over the 2025-30 period.
The £104 billion funding package is the highest level of investment in the water sector since privatisation and is set to be the second largest private sector investment programme for this Parliament, which will contribute to the delivery of key elements of the Government’s Plan for Change and Mission Objectives.
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