Enforcement capacity bolstered with £11m funding increase
Ofwat’s enforcement capacity is set to be trebled, following the approval of an £11.3m funding budget increase from HM Treasury.
The additional funding will see the water regulator’s budget increase to enable it to drive change in water companies and hold them to account for falling short.
It will also enable Ofwat to oversee the next price review (PR24) which will require greater investment by water companies to improve their environmental performance and the resilience of the sector.
The new funding will be focused on building Ofwat capability to help drive transformation in company performance, enabling long term infrastructure delivery, making progress towards PR24, as well and delivering a significant boost to the regulator’s enforcement capacity.
Ofwat is currently conducting its largest ever investigation, with live enforcement cases underway into six companies looking at their management of sewage treatment works.
Following the HM Treasury approval, Ofwat will be able to gain the additional funding by increasing the licence fee charged to water companies.
David Black, Ofwat CEO, yesterday said:
“We welcome this significant uplift in funding, which will see our capacity to take tough enforcement action almost trebled, while also enabling us to push for a step up in investment for the sector. This comes at an important time for the water sector as consumers in England and Wales rightly call for better performance from their water providers, and Ofwat continues to push for the changes we want to see in the sector.
“This announcement will send out a strong signal; that the time is now for water companies to deliver for customers and the environment. Should they fail in those commitments, Ofwat has never been better resourced or more determined to take robust, effective action.”
Water Minister Rebecca Pow, yesterday said:
“When we set out our priorities for Ofwat last year, we asked them to challenge water companies to show how they will be more ambitious in protecting the environment, whilst also getting the basics right.
“Combined with the commitments in our Plan for Water to bolster tougher enforcement action, this funding will give them a greater capacity to hold water companies to account and protect our waters.”
Gareth Davies, Exchequer Secretary to the Treasury, yesterday said:
“We are committed to ensuring a sustainable water environment for England and Wales, and this funding increase will support Ofwat’s vital role in holding companies to account for their performance.
“With these additional resources, Ofwat will be well-equipped to take decisive action against underperformance and foster a culture of responsibility and excellence within the water industry.”
Original article link: https://www.ofwat.gov.uk/enforcement-capacity-bolstered-with-11m-funding-increase/
Latest News from
Only 3 in 10 customers aware of financial support available from their water company30/05/2023 13:15:00
Ofwat’s latest cost of living research, published today, reveals not only that many customers are still struggling financially but also that the percentage of customers aware that financial help is available from water companies has hovered around 30% over the last year.
Ofwat launches investigation into Welsh Water leakage performance26/05/2023 10:05:00
Ofwat has launched an enforcement investigation into Welsh Water, relating to the accuracy of information reported by the company for its performance on leakage and per capita consumption (PCC), following a notification from the company relating to inaccuracies.
Ofwat launches investigation into South West Water leakage performance24/05/2023 10:15:00
Ofwat has launched an enforcement investigation into South West Water, relating to the accuracy of information reported by the company for its performance on leakage and per capita consumption (PCC).
Ofwat award farmland water “battery” storage and leak-detecting broadband cables in latest innovation competition16/05/2023 14:15:00
Farmers could soon be reimbursed for creating water storage ponds or water “batteries” as part of an innovative drought-prevention project that has today received funding from Ofwat’s Innovation Fund.
Ofwat seeks powers to drive higher standards in customer service across water sector12/05/2023 09:10:00
Ofwat is seeking new powers to take action against water and wastewater companies across England and Wales when customer service falls short.
Ofwat to penalise companies for failing to monitor storm overflows09/05/2023 15:15:15
Ofwat has today set out new measures so that companies face penalties if they do not fully monitor their storm overflows.
Ofwat sets out £1.6bn boost for water company investment04/04/2023 13:15:00
Ofwat is proposing to approve the accelerated delivery of 31 investment schemes to deliver benefits for customers and the environment.
Plans for three new reservoirs move a step closer31/03/2023 09:05:00
Ofwat yesterday gave the green light to continue investigation into three new reservoirs, which could supply water for millions of customers.