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Ofwat to be reviewed

September 24, 2010 at 1:43 pm

The government has announced that Ofwat, the water industry regulator, is to be reviewed. Defra (the Department for Environment, Food and Rural Affairs) has appointed David Gray as the lead reviewer for the check, which is set to find out whether Ofwat is still providing value for money.

The water industry is facing a number of challenges at the moment. Population growth, water shortages as a result of global warming, and aging pipes and water infrastructure are all placing a burden on the industry.

The review is to decide what changes need to be made for the water regulator, including looking into its responsibilities and how it is going to be able to ensure that it is still providing value for money.

Established 20 years ago, Ofwat was formed to regulate the newly privatised water industry. It has the power to prosecute water companies if they fail to deliver on service, and has been in the news recently for trying to restrict the amount by which Bristol Water could increase its bills, a decision which Bristol Water appealed and won.

The environment secretary, Caroline Spelman, said that the government needs to “make sure the regulator is in good shape to help the industry prepare for a changing climate and a growing population, at the same time as keeping bills affordable”. She highlighted how important it was that bill payers and water companies alike are reassured that they are still getting good value for money from the regulator.

The water industry is thought to be happy with the news, and the review is planned for completion by early 2011.

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One response to “Ofwat to be reviewed”

  1. David Morris says:

    Why were the Water Companiees sold to Private Contractors when there is no possibillity of competition keeping costs down !

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