Oral Answers to Questions

Debate between Rebecca Pow and John Penrose

Thursday 17th November 2022 Commons Chamber

[John Penrose (Weston-super-Mare) (Con)]

2. If she will instruct Ofwat to publish and execute plans to strengthen competition and reduce regulatory burdens in the water industry.

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Rebecca Pow)]

I thank my hon. Friend for his independent report, “Power To The People”, which focuses on competition in the regulated sectors. Through our strategic policy statement, we have instructed Ofwat not only to put the environment at the top of the agenda but to promote competition where that would benefit consumers. This year, we also instructed Ofwat to produce a competition stocktake. It published that in July and we are reviewing it.

[John Penrose]

I thank my hon. Friend for her kind words about my report on competition in all utilities, including the water sector, which was commissioned by the Government but, as she says, is independent. I am pleased to hear that we have now got a statement or a request—a demand, I suppose—that Ofwat introduces more competition. It is essential that we get dates and deadlines on introducing more competition and reducing the regulatory burden. Will she promise me that the Government’s response will aim for those dates and deadlines, so there can be no backsliding in progress towards helping my constituents with their water bills?

[Rebecca Pow]

By putting competition on the agenda for Ofwat, we have already demonstrated that we mean business on this issue and we will respond to that report. Ofwat has already put an outcomes-based approach in its 2024 price review and it is already enforcing competition for the procurement of infrastructure. That demonstrates that we are going in a direction that I think my hon. Friend may be pleased with.