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Water Companies: Environment Protection

Asked by James McMurdockIndependentDepartment for Environment, Food and Rural AffairsTabled Answered 5 March 2026UIN 116630

The question

To ask the Secretary of State for Environment, Food and Rural Affairs, what recent assessment he has made of the effectiveness of Ofwat in preventing water companies from prioritising shareholder returns over environmental protection.

Answered by Emma Hardy

A stable and effective regulatory framework is crucial in attracting sustained investment to the sector.  The Government supports Ofwat imposing tougher rules on water company dividends and bonuses, so that consumer bills never reward pollution. Ofwat want to see improved transparency of environmental outcomes, enabling customers and stakeholders to understand progress and challenge companies on performance.

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