Water Companies

Katie Lam Excerpts

Monday 8th June 2026 Commons Chamber

[Emma Hardy]

My hon. Friend is right that we share the same water company. Sir Jon Cunliffe’s commission addressed whether it would be appropriate for the Government to set a level of debt that companies cannot go beyond, because the gearing over the last decade or so has been completely unsustainable. It is making companies act in a way that I do not think is right. That is why the need to look at the debt levels for these companies was included in the White Paper. We need to look at what is a sensible and realistic level for them to hold, to ensure it does not undermine their sustainability or their ability to put customers and the environment first, which should be at the core of everything they do.

[Katie Lam (Weald of Kent) (Con)]

I know that the Minister is acutely aware of the terrible problems we have had with South East Water; we have discussed it recently. It cannot supply water in the winter because it is too cold. It cannot supply water in the summer because it is too hot. The chair and the chief executive have both stood down, but that is a necessary condition for the company to be transformed, not the transformation itself. Can the Minister give us any update she is aware of on how the recruitment process is going to appoint their successors and what role the regulator and the Department will play in that process?