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

To ask the Secretary of State for Environment, Food and Rural Affairs, what steps she is taking to ensure that Ofwat's successor regulator has sufficient powers to place a failing water company into Special Administration on grounds of environmental non-compliance, as well as insolvency.

As set out in the Water White Paper, we will create a powerful new regulator, bringing together the relevant functions from the existing regulators (of Ofwat, the Drinking Water Inspectorate, the Environment Agency and Natural England) into one new body. The new regulator will be able to deliver better services for customers, joined-up regulation and a cleaner environment for nature and the public.

The bar for the Special Administration Regime is high. As per existing legislative requirements, evidence is needed that a company is insolvent or they are in such serious breach of their principal statutory duties or an enforcement order that it is inappropriate for the company to retain its licence.

As set out in the White Paper, to ensure the regulator can act decisively should the high bar for Special Administration be met, we will ensure companies have appropriate contingency Special Administration Regime (SAR) plans, setting out how they would ensure that any special administrator, once appointed, would be able to maintain delivery of critical services and facilitate restructuring or sale if SAR is triggered.