Ofwat seeks to make it mandatory for all water companies to meet new board leadership, transparency and governance objectives

14 May 2019 03:37 PM

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