Water Companies: Regulation
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, what interim regulatory measures will be introduced before a successor regulator to Ofwat is established.
Answered by Emma Hardy
This Government has put in place the building blocks to clean up our rivers, lakes and seas. We have increased accountability by giving the regulators more teeth through the Water (Special Measures) Act with a ban on unfair bonuses, severe and automatic penalties for breaking the law, and jail sentences for serious offences.
The Independent Water Commission has examined how to strengthen the regulation and delivery of water services to better support long-term water security, sustainable growth, and environmental protection. The Commission’s final report was published on 21 July 2025. The Secretary of State provided an Oral Statement to Parliament in response to the final report.
The Government is immediately taking forward a number of Sir Jon’s recommendations.
Subject to consultation this autumn, the Government will abolish Ofwat and merge its functions with water functions across the Environment Agency, Natural England and the Drinking Water Inspectorate to form a single new regulator.
Until the single water regulator is fully established, the existing regulators will continue to carry out their functions and enforcement responsibilities in full. The Government will clarify its expectations through a transition plan, expected to be published later this year.
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