Water Companies: Private Ownership

Lord Roborough Excerpts

Wednesday 29th October 2025 Lords Chamber

[Lord Katz (Lab)]

I thank my noble friend for that question. I will have to write to her about whether that fine has been paid. We have been very clear through the Water (Special Measures) Act and our response to the Cunliffe review that we are absolutely going to bear down on water company executives who take unjustified profits. We have already done that. We have already fined a number of organisations and cumulatively more than £240 million in wastewater enforcement fines and redress has been confirmed by Ofwat in 2025. We are serious about tackling the state of the water sector and very clear that water companies here are meant to secure investment and keep bills down, not take profits.

[Lord Roborough (Con)]

My Lords, there are ongoing concerns about the financial position of Thames Water. Can the Minister please confirm that no matter what, including the special administration regime, consumers will not be forced to pay higher bills to cover failures at Thames Water or indeed any other water company?

[Lord Katz (Lab)]

The noble Lord will be aware there is a high bar for the use of a special administration regime but we have made our preparations and are ready for all eventualities, including applying for such a regime, if necessary. While the company is stable, we have stepped up the preparations. It is clear that if it is in serious breach of its principal statutory duties or an enforcement order is appropriate for the company to retain its licence, we will act. We will make sure that it is not at bill payers’ expense.