Oral Answers to Questions

Richard Foord Excerpts

Thursday 17th November 2022 Commons Chamber

[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.

[Richard Foord (Tiverton and Honiton) (LD)]

South West Water, which covers both my constituency and that of the Minister, has been given a one-star rating by the Environment Agency because of water pollution. It is clear that Ofwat cannot properly regulate some of the wayward companies that continue to pay out huge sums in dividends while failing our communities. Does the Minister agree with me that Ofwat should be abolished so that we can create a new regulator that actually has some teeth?

[Rebecca Pow]

The answer to that is no. We are working very constructively with Ofwat. It can fine a water company that is found to be in breach 10% of its turnover. It has used fines, and Environment Agency fines have significantly increased over the last year as well. I am certain that working with Ofwat, so that it works with the water companies to bring them into line, is the right way to approach the issue, and that is what Ofwat is doing.