The Industry and Regulators Committee (IRC) has been investigating the regulation of the water industry by Ofwat, including the investment and approach needed to prevent storm overflow overuse and the steps that must be taken to secure future water supply.
It blamed “insufficient government strategy” and inadequate co-ordination resulting in a failure to “treat water with the care and importance it deserves”.
In particular, it was found that Ofwat had not ensured that companies were investing sufficiently in water infrastructure in an effort to keep bills low at the expense of badly needed investment.
In 2021, a review conducted by the Environment Agency found that firms in the sector had hit their lowest ever level with regards to environmental protection while most companies’ performance was declining further still.
According to IRC, this was largely because water companies have been “overly focused” on maximising financial returns at the expense of...