Ofwat seeks to make it mandatory for all water companies to meet new board leadership, transparency and governance objectives
Ofwat yesterday launched a consultation to make it compulsory for all water companies to meet new objectives about board leadership, transparency and governance, including the need to establish a purpose, strategy and set of values.
Ofwat first introduced its board leadership, transparency and governance principles in 2014 and, following consultation, updated them earlier this year to include a specific requirement for water company boards to establish their company’s purpose, strategy and values. Company boards must also be satisfied that these, and its culture, reflect the needs of all those it serves.
The consultation seeks to incorporate the new objectives into company licences and make it mandatory for companies to meet them.
This is the latest step in Ofwat’s ongoing campaign to strengthen water companies’ corporate behaviours. It will make sure there is clarity and commitment about purpose and values embedded at the very top of water companies.
The consultation runs until Friday 14 June.
Notes to editors
- The four objectives that appointees must meet are:
- The Board of the Appointee establishes the company’s purpose, strategy and values, and is satisfied that these and its culture reflect the needs of all those it serves.
- The Appointee has an effective Board with full responsibility for all aspects of the Appointee’s business for the long term.
- The Board of the Appointee’s leadership and approach to transparency and governance engenders trust in the Appointee and ensures accountability for their actions.
- The Board of the Appointee and its committees are competent, well run, and have sufficient independent membership, ensuring they can make high quality decisions that address diverse customer and stakeholder needs.
Latest News from
Customer service report shows familiar faces at the top and bottom for the water sector18/09/2019 13:15:00
Ofwat has today published a report on customer satisfaction with Portsmouth Water, Wessex Water and Anglian Water coming out as top performers, following strong results the year before too.
Ofwat modifies licences of the 17 water companies to include the objectives of the Board leadership, transparency and governance principles01/08/2019 15:15:15
Ofwat has today made it compulsory for all water companies to meet new objectives about board leadership, transparency and governance (BLTG), including the need to establish a purpose, strategy and set of values.
Ofwat further protects customer interest with new guidance on companies’ ring-fencing obligations24/07/2019 08:05:00
Water companies trying to create financial arrangements otherwise prohibited by their licence, which might include things like intercompany loans up to the parent company, will have to clearly show how the arrangements serve customers’ interests or they will be blocked by Ofwat, new guidance shows.
Price review: Ofwat unveils programme of huge investment, service improvements and lower bills for water customers18/07/2019 10:25:00
Ofwat yesterday set out a major package of investment to signal a new era for what the water sector delivers for customers and the environment.
Market participants need to ‘step up’ to deliver for customers: Ofwat reviews the second year of the business retail market12/07/2019 12:15:00
Customers have saved around £10million in the second year of the market but urgent action is required to get the market working effectively and unlock better outcomes for more customers; according to a new report reviewing the second year of the business retail market from water regulator Ofwat.
Ofwat confirms package of measures aimed at strengthening financial resilience in water companies10/07/2019 12:15:00
Ofwat yesterday confirmed a package of measures to strengthen water companies’ financial resilience, by calling on them to adopt a common set of standards.
Ofwat provides early notice of concerns with 2020-25 efficiency for four water companies04/07/2019 15:37:00
Ofwat is writing to Anglian Water, SES Water, Thames Water, and Yorkshire Water to give them early notice that it has substantial concerns about their proposed costs for maintaining business as usual service (‘base expenditure’) for the 2020-25 period.
Southern water to pay £126m following Ofwat investigation25/06/2019 13:15:00
Southern Water has agreed to pay £126m in penalties and payments to customers following serious failures in the operation of its sewage treatment sites and for deliberately misreporting its performance.