Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the effectiveness of Ofwat in preventing excessive debt accumulation in the water sector.

The Independent Water Commission (IWC) assessed the issue of water companies accumulating excessive debt. It concluded that Ofwat has not been effective in preventing excessive debt accumulation in the water sector.

In response, the government committed in the Water White Paper to introduce reforms to ensure companies do not accumulate unmanageable debt. The government is abolishing Ofwat, and replacing it with a new, single water regulator. This is a key step towards implementing a more effective approach to strengthening financial resilience across the water sector.