Water Companies: Conflict of Interests

The Environment Agency (EA) and Ofwat have robust safeguards in place to prevent conflicts of interest between regulators and the water and sewerage companies they oversee.

All EA employees, contractors and temporary workers must submit an annual declaration of interests, including a nil return where no interests are held. Declarations cover all aspects of an individual’s role and are reviewed by managers, who must identify any actual or potential conflicts and put appropriate mitigation measures in place where necessary.

Ofwat’s conflict of interest arrangements are based on wider Civil Service standards. Staff must declare any actual or potential conflicts on appointment, annually, and as they arise, including during procurement and recruitment, with all declarations recorded in a central register. Conflicts are managed on a proportionate, case-by-case basis, supported by strict rules on financial interests, controls on confidential information, and senior management oversight. Business Appointment Rules may also apply when staff leave Ofwat.