The Public Accounts Committee (PAC) will hold an evidence session
on regulating the water sector at 3.30pm on Monday
9th June.
Consumer trust in the water sector is at its lowest since
monitoring began in 2011. Government announced in May that it would
be building the first two major reservoirs since the 1990s - if
no action were taken, the UK would face a water supply shortage
of 5 billion litres per day by 2050. Regulator Ofwat calculated
that bill rises will average £31 per household, before inflation,
each year for the next five years. The regulator said in January
that while water bills will vary, the average increase forecast
for 2025-26 will be 26%, or £123. In 2024-25, the average water
and sewage bill for households was £440.
Two panels will be held – the first with trade body WaterUK,
advocacy group the Consumer Council for Water, and economic
consultancy First Economics. Likely topics include the financial
resilience of the water sector, the future for water bills, and
what can be done to win back consumer trust.
The PAC will then hear from senior officials at the Department of
Environment, Food and Rural Affairs (Defra), the Environment
Agency, and Ofwat, where they will be questioned on likely topics
including:
- gaps and inconsistencies in the regulatory framework;
- the sector's stagnating performance in pollution incidents,
mains bursts and supply interruptions;
- regulators' ability to prevent companies paying excessive
dividends; and
- how to ensure that, in the event a water company goes under,
taxpayers and customers would not have to foot the bill.
Witnesses
First panel from 3.30pm:
- David Henderson, Chief Executive at WaterUK
- Dr Mike Keil, Chief Executive at Consumer Council for Water
- John Earwaker, Director at First Economics
Second panel from approx. 4.15pm:
- Dame DBE, Permanent
Secretary at Department for Environment, Food and Rural Affairs
(Defra)
- David Hill, Director General for Strategy and Water at
Department for Environment, Food and Rural Affairs
- Philip Duffy, Chief Executive at Environment Agency
-
, Chief Executive at Ofwat
